Mortgage Networks to grow in importance whilst the market grapples with the Holy Grail of multi-lender POS says Focus poll

9 November 2007

Following Focus’ mortgage industry briefing this week, there seems to be a clear appetite between lenders and distributors to create a powerful straight through processing (STP) model or an ‘integrated mortgage business’. Delegates believe that the market is moving towards the integration of the mortgage value chain, with the ‘holy grail’ being a multi-lender Point of Sale solution (POS).

An ‘integrated mortgage business’ will be driven by technology innovation from providers such as Focus and underpinned by standards such as those being developed by Origo. According to delegates, other key innovations in the mortgage market will include better back office and POS integration, an increased role of B2C ecommerce and self service and an increasingly automated 'advised' sales process.

Nearly half of all delegates believed that mortgage networks will grow their market share in the next two/three years, underpinned by an increased emphasis on differentiation of service and technology innovations. Delegates suggested the role of the packager and their market share would be put under pressure in the coming years.

New technology initiatives are widespread in the mortgage market, but when implementing a new technology solution, the main requirements for delegates were that technology should be easy to use, flexible, enable ease of integration, deliver low cost of ownership and be easy to maintain. The majority of delegates would want to see a return on investment within 12 months to two years when implementing a new technology solution, but the key challenges were justifying the investment, having the right technology in place to support the whole organisation, training of advisers on new solutions and ensuring adviser take-up.

The majority of delegates were already automating their sales processes, with 64% offering an electronic mortgage application facility either on a B2B extranet facility or across mortgage sourcing platforms. According to delegates, the key benefits from sales process automation is a faster sales process, reduction in errors, ability to launch new products faster and cost reduction.

According to the results from an exit poll at Focus’ mortgage industry briefing, 80% of delegates believe that point of sale completions (POSC) will become a reality in the mortgage market in the next two/three years, with a higher probability for re-mortgage cases. Delegates identified a number of major inhibitors to POSC such as the attitudes and co-operations of lenders, regulation, broker mindset and adoption of e-commerce initiatives such as EID and AVMs.

The exit poll was conducted at Focus’ Mortgage Industry briefing – ‘Success in Mortgage Sales – A winning formula’ at the Hilton Warwick on 6th November. Leading industry guru Frank Eve from Frank Eve Consulting presented his views on the current climate in the mortgage market and provided an insight into his lender extranet benchmarking study that was released on the same day as the Focus event. Milton James, CIO, Home of Choice, presented on the future trends in POS solutions and trends in STP and Focus presented on their new market leading solutions for the mortgage market. The event was well attended by members of the mortgage industry.

Clive Boulton, Business Development Manager from Focus Solutions commented: “Straight through processing and fully integrated solutions are a hot topic in the mortgage market, enabling organisations to conduct business more efficiently, easily and quickly whilst ensuring compliance and driving pro-active management of the customer relationship. We at Focus, with our Mortgage market propositions, are striving to work with all participants in the mortgage value chain to deliver an end-to-end component-based ‘whole of office’ solution that makes STP an increasing reality.”

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