Bolton has previously suggested he may charge sourcing systems to guarantee accuracy.
Under mortgage regulation all intermediaries must take ‘reasonable steps’ to ensure any product illustration is accurate whether sourced from a lender or a sourcing system. Product illustrations must be ‘clear, fair and not misleading’ and also accurate to within a 0.01 variation or £1 whichever is greater.
Bolton explained: “I think it is impossible for sourcing systems to be in a position to supply FSA-compliant Key Fact Illustrations (KFIs) before ‘Mortgage Day’. I say this because none of the sourcing systems have approached me to take things forward. Therefore I have no plans to allocate resources for a team to supply information to them.”
Meanwhile, Mortgages plc has hired a product administration assistant to verify its products.
Head of marketing Julian Wells, said: “Brokers using sourcing systems are given the option of searching for verified products only which is why we want to ensure that all our products are available.”
Mark Lofthouse, chief executive at Mortgage Brain, said he was exploring the possibility of supplying data verified by lenders, to other sourcing systems. “Product verification is one the biggest issues facing lenders at the present time,” he said.
Bill Safran, joint managing director of sourcing system Trigold, agreed. “Brokers will be able to see which of the products are verified by lenders on the systems and I am sure this will play a part in the decisions they make,” he said.
