The executive chairman of GMAC-RFC, Stephen Knight, speaking one year on from the launch of GMAC’s Point Of Sale Decisioning System (POSD), said: “I have three words to say about DIPs: waste of time. We believe that DIPS are about as useful to an intermediary as a flamethrower in Madame Tussauds.”
Jeff Knight, head of marketing services at GMAC-RFC, declared that lenders persisting with DIPs were costing intermediaries time and money.
He said: “Our online decisioning system has reduced paperwork and created more time for intermediaries to sell.
“In our increasingly time-poor society this is hugely beneficial to brokers – some would say we have built a time machine. There are clear advantages to online binding decisions over old-fashioned DIPs, which leave room for doubt and can waste intermediaries’ time – a precious commodity in today’s market. We believe time is running out for out-dated DIPs.”
Tom Gurrie, intermediary sales controller at Chelsea Building Society, said: “We’re one of many lenders looking to cut time taken from application to offer but at this stage we still think that DIPs have a vital role to play in the mortgage application process.
“We’re not convinced that making conditional offers is the way forward and we always try to ensure that the decision made in the DIP is carried through to the final offer.”
James Cotton, mortgage specialist at London & Country, said: “The ability to get a quick binding decision online is a real benefit to brokers and in turn their clients.
“Quicker and more efficient processing has to be the future and I’m sure other lenders will be keeping a close eye on the advances made by the likes of GMAC in this area.”
