In addition, nearly half (47%) of mortgage intermediaries say they are concerned about being unable to deal with lenders who opt to close their books while they re-engineer systems and processes to become FSA compliant.
Indeed over two thirds (67%) of advisers say that they would be worried about the level of service that these lenders could provide once they re-open to new business, further demonstrating the long-term ramifications of not being prepared for regulation.
Phil Heaton-Jones, director product development, mortgages at Marlborough Stirling, said: “Lenders failing to get their houses in order or simply adopting short-term solutions to regulation are in danger of permanently alienating brokers, who have indicated that they will regard this type of approach with grave concern.
“Lenders must ensure that they are in a position to provide excellent levels of service following M-day, underpinned by sound business processes and modern technology, otherwise intermediaries will vote with their feet.”
Marlborough Stirling’s mortgage solutions are available as direct software systems, via an application server provider (ASP) model or as fully outsourced business administration services. Its Omiga software platform provides compliant point-of-sale and application processing solutions that can be used across all distribution channels to provide consistent and efficient straight through processing of mortgages. In addition its Optimus solution facilitates the ongoing administration and management of mortgage business from the release of funds through to redemption, including comprehensive borrower retention and securitisation capabilities.
Mortgage broker research
Are you worried about not being able to do business with lenders who close their books to new business while they prepare systems and processes for the onset of regulation?
%
Yes
47%
No
53%
Are you concerned about the service that these lenders will provide when they re-open to new business?
Yes
67%
No
33%
If lenders are not ready for regulation will it affect your decision to do business with them in future?
Yes
75%
No
25
