Lenders have always been protective of client information, if they have not confirmed a wish for the broker to have access, but lenders that securitise often have little interest in maintaining a long-term relationship with a client.
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Therefore, if the client needs a further advance, there could be confusion over who the point of reference is; a situation resolved if this was the broker.
Linda Will, managing director of Accord Mortgages, commented: “You would have thought, especially with arrears data, the securitising lenders would have an even greater interest as they don’t want the quality of the pool being affected. If they did need to top up a pool, they would need to chase people up but surely the broker is in the best position to do this as they have the best relationship?”
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According to reports at the Mortgage Business Expo, five lenders are on the verge of allowing brokers access to arrears data, following Accord’s move last month.
Julie Gaskin, corporate relations manager at GMAC-RFC, believed greater sharing could only be positive for the client.
“One of the first things that happens when a client falls behind is that they stop paying other areas, especially insurance. This means they haven’t got protection. Therefore, the broker is the best person for them to speak to as they can help them reduce costs and still maintain some sort of protection.”
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However, Mark Sismey-Durrant, chief executive of Heritable Bank, insisted the best thing was for the broker to get clearance from the client.
“With securitisation, in most cases, it’s just the mortgage that moves – there’s still an admin link. However, to avoid grey areas, it’s always better for the broker to get a letter from the client.”
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