This technology means the timeline for obtaining a mortgage offer has now been reduced from weeks to a matter of minutes.
GMAC-RFC has launched its POSO system simultaneously to the broker and packager market, believing it to have equal benefits for both distribution channels. Beneficiaries of the first ever point of sale offers were John Charcol and Praxis, whose clients received binding mortgage offers within minutes of applying at 8.40am on Monday.
Ray Boulger, senior technical director at John Charcol, commented: “This morning, once we had agreed with a client that a GMAC-RFC product was right for them, we obtained an instant credit decision followed by an instant offer that the clients were able to take away with them there and then. They were delighted to have an instant formal mortgage offer and the removal of any chasing or processing on our part will have a major impact on our business model.”
Dudley Aldous from Praxis added: “We received an application today for a GMAC-RFC product and were able to respond to our broker minutes later by sending the formal mortgage offer. No processing, no chasing, no waiting and no uncertainty. Point of sale offers will revolutionise packager service.”
According to recent research commissioned by GMAC-RFC, there is clear demand from consumers for a quicker and more efficient offer process. Its analysis shows over two thirds (68 per cent) said they would have liked to have received a mortgage or re-mortgage offer on the same day as application while one in six homeowners experienced delays in getting a mortgage offer from their lender. one in ten also added that these delays resulted in extra costs such as bridging loans or actually having to find a new property to buy.
GMAC-RFC’s testing suggests that about 60 per cent of applications will receive instant offers, and this will increase over time. Even where an instant offer is not available, perhaps due to a high loan-to-value or a buy-to-let case, the system will automatically instruct the valuer who will respond electronically to GMAC-RFC allowing the intermediary or packager (as appropriate) to print the mortgage offer a few days later.
GMAC-RFC has made POSO available to a controlled group of intermediaries and packagers. Over the next ten weeks it will be rolled out to all intermediaries and packagers. Never again will such firms, when dealing with GMAC-RFC, have to chase, negotiate or wait for their formal mortgage offers. They will be available immediately in the majority of cases and online a few days later for the remainder.
Jeff Knight, director of marketing at GMAC-RFC, said: “We are delighted to be first to market with POSO just as we were first to market with a binding yes/no credit decision with no refers. This technology is not only responding to the immediacy of contemporary consumer demand, but is also reducing costs for our business partners while freeing up sales time for them. To be successful in today’s fast moving mortgage market you need to be able to envision the future and the technological developments that will get you there first.”
