In preparation for FSA regulation mortgage lenders and advisors have had to overhaul their systems, procedures and marketing literature in time for the new rules.
For many this has proved costly and time consuming. However, by sharing a common platform of mortgage application and administration, and enquiry management systems with the Newcastle, the cost of compliance for the Melton Mowbray and Stafford Railway has effectively been zero.
Newcastle Building Society’s core computer systems have been developed and enhanced in partnership with Melton Mowbray Building Society as part of a joint venture called Newton Facilities Management Limited (NFML). As a result of this collaboration NFML now provides full or part computer systems to other building societies – a service it has provided for the Stafford Railway.
Robert Hollinshead, the chief executive of Newcastle Building Society, said: “Preparing for the introduction of any new regulations can be a heavy burden on any organisation, particularly if they need to update a number of different computer systems which frequently work independently of each other. Through NFML we have developed a far more integrated computer system which has eased the transition considerably. Clearly this partnership approach has brought huge benefits for us, Melton Mowbray and Stafford Railway. As we continue to operate in such a heavily regulated environment there could also be significant advantages for other financial service providers to use our systems.”
Gordon Wells, the chief executive of Melton Mowbray Building Society, added: “By actively working as a partnership to comply with the new rules we have ensured our systems will be ready on time, and that they have been updated as efficiently and cost effectively as possible. Sharing system testing tasks, for example, has been particularly useful.”
Mike Heenan, the chief executive of Stafford Railway Building Society, said: “Complying with the new mortgage regulation rules is obviously extremely important. Our partnership with the Newcastle and Melton Mowbray has meant we have avoided many of the costs in time and money incurred by other societies. From our point of view they have looked after the IT, leaving us free to look after our business.”
