But M-day was just the beginning, say lenders in new survey
The survey indicates that the average amount spent by lenders was £2.3 million but nearly one in three (30%) have invested over £4 million. According to many lenders, however, this is just the beginning.
The survey, conducted during the Council of Mortgage Lenders annual conference, reveals that 38% believe that further regulation is the main issue currently facing mortgage lenders. Indeed, all respondents believed the mortgage industry will be subject to additional legislation requiring lenders to make further improvements to their systems. Other key issues currently facing lenders include rising costs and shrinking margins (35%) and prospects for the housing market (22%).
More than half (54%) of those surveyed believe mortgage regulation has led to improved systems and processes within their business. However, 46% believe there is still a need for further improvements.
When asked to predict who would be the five largest lenders in 2010, respondents ranked the following:
3. Abbey / Banco Santander
5. Tie between HSBC and Lloyds TSB
Phil Heaton-Jones, director of product development, mortgages, comments:
“The mortgage industry has clearly benefited from the introduction of regulation. Systems and processes have improved, but there is still a long way to go before all lenders are in a position to provide the excellent levels of service required, underpinned by sound business processes and modern technology. With the prospect of further regulation on the horizon, lenders must ensure that they are fully prepared.”
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.
* The findings are based on answers to a questionnaire from 48 representatives from the mortgage industry including 6 of the top 10 lenders representing 64% of the lending market. £345 million is based on responses from 20 lenders, including 6 of the top 10, and is calculated by multiplying the average amount spent (£2.3 million) by the number of lenders in the market (150) according to the CML.