Simon Chalk, mortgage planner at Mortgage Portfolio Services, told Mortgage Introducer his worries about the increasing number of lenders who rely on technology-based decisioning systems.
Chalk’s concerns were exacerbated this week with the problems that have plagued the Mortgage Express online system. Chalk said: “I usually have no problems with Mortgage Express but what’s happened is an example and a dig in the ribs to lenders relying too much on technology.
“All lenders need to offer intermediaries the choice of online and paper-based applications. How would Halifax cope if this happened to its IT
system?”
Sally Lauder, press manager for Alliance & Leicester, said companies that deal with countless computerised transactions a day should be capable of developing effective back-up systems in the event of an online system problem.
But Chalk dismissed this claim and said: “There are things that are beyond lenders’ control – even the biggest internet providers have outages. The infrastructure of the worldwide web is not invulnerable.” He added that accidents must also be considered – a workman cutting the wrong cable could force hundreds of businesses offline for days.
Jeff Knight, head of marketing services at GMAC-RFC, said: “Around 97 per cent of our applications are made online but we don’t force brokers into a fully online process. Once the binding decision is made, the broker can print it out and post it.”
Knight added that he did not think paper applications would become obsolete in the near future. “Lenders such as GMAC-RFC and BM Solutions are using technology as they deal with greater volumes
but there are smaller specialist lenders whose markets have different needs and so tailor their service to those requirements.”
