Distributors can now access the bridging lender’s system, allowing them to produce KFIs and manage loan applications from submission to completion.
Previously the packager had to rely on the regulated intermediary to prepare the KFI for their client. With the changes to the system, this is no longer the case.
Gavin Diamond, Finance Director of Cheval, said:
“Over the last couple of years more and more regulated deals are coming via the packager channel, but because many are not regulated, this has presented some problems.”
“Now unregulated packagers can log on and prepare a KFI on behalf of the regulated broker, enabling the packager to maintain control of the entire application. The onus still remains on the regulated intermediary to present the KFI to their client and provide any advice.”
Mr Diamond said that the new set up had the added advantage of safeguarding the packager/intermediary relationship, because Cheval need not have any direct contact with the broker.
The new KFI follows Cheval’s recently enhanced Agreement in Principle, which spells out every aspect of the loan, including the net and gross amount to be borrowed, the interest rate charged, legal and procuration fees levied. In a first for the industry, the AIP also indicates the maximum loan that Cheval could consider based on the information provided at the outset.
Diamond continued:
“There has been criticism that some AIPs do not provide all the information that they should. We have moved to ensure that ours has the complete information that any introducer could reasonably expect, all on a single piece of paper.”
“This is all part of our continued commitment to provide a market-leading customer experience.”
