Paul Shearman, mortgage proposition director at Openwork, warned brokers to be cautious over automatic cascading and suggested they should quit the system and re-enter the data if a client was cascaded downwards.
However, Peter Izard, senior manager corporate accounts for GMAC-RFC, defended cascading and advised brokers to use credit reports, from Equifax or Experian, that lenders also use to gain extra information. “Cascading is a guide from a lender saying we can’t accept you on one level, but can on another. The information we have gleaned from Experian is public access, so, while every lender has a unique credit scoring system, having the report gives the broker clearer information. Brokers should put cases through on the highest level possible, even if they don’t think it will work, because the system will cascade to the best rate.”
But Rod Murdison, proprietor of Murdison & Browning, commented: “ The difficulty is that the broker loses control, as you don’t know how or when the client will get the credit report.”
