The primary technology provider to the mortgage lending industry has called on lenders to better support brokers through valuing their time.
Many lenders leave brokers to manually handle loan variations, including term extensions, principal decreases on a loan, product splits and security swaps – all of which amount to around a third of brokers’ transactions.
“For brokers, this archaic practice translates as a failure to provide them with a variations process that’s as efficient, fast and compliant as the new loan process,” said NextGen.Net chief customer officer, Tony Carn.
“Lenders who provide brokers with…a standardised approach to manage customers’ variations throughout the life cycle of their loan, don’t just empower brokers and eliminate any fear or perception of channel conflict, they ensure retention of ownership of the loan.”
ApplyOnline, NextGen.Net’s electronic lodgement system, can also handle variations through replicating the procedure for new loans and is correspondingly efficient.
Further, the 'Combined Industry Compliance' tab for variations ensures the application adheres to the current responsible lending guidelines.
“We know what brokers do for lenders regarding the ongoing management of customers. In many instances however, lenders fail to empower brokers to easily facilitate transactions by using a clear, auditable and traceable process for variations,” said Carn.
“Lenders who provide the ApplyOnline Variations tool and a standardised approach for in-life variations will reap major benefits.”