The study aims to provide an independent overview of the
market and an industry benchmark.
The study, developed in consultation with the Council of Mortgage
Lenders (CML), enables lenders to identify and analyse their competitive
position within the mortgage industry. This detailed perspective
enables lenders to focus on specific areas for improvement to increase
efficiency and reduce costs.
Year on year, the scope of the study expands in response to lender
feedback. This year's independent mortgage benchmarking covers general
servicing for the first time. Point of sale, application processing and
redemptions, as well as arrears, customer retention and intermediary
business are once again included in the exercise.
David Edwards, managing director of mortgages at Vertex Financial
Services, commented: "The study has established itself as a vital and credible business
intelligence tool for mortgage lenders. Last year's study revealed a
substantial increase in the costs of application processing - a direct
consequence of regulation. The study also identified Mortgage Day's
significant impact on cost, quality and productivity. The 2006 study is
eagerly anticipated as it will show the impact of a full year in a
regulated environment, enabling lenders to fully assess the effects
after the initial six month upheaval."
The Study
In consultation with the CML, Vertex Financial Services has designed a
detailed questionnaire that enables each lender to supply the required
data to benchmark their operation. Throughout the process, a dedicated
helpline is available to support lenders in completing the
questionnaire. A discussion forum is also available for participants to
discuss issues or questions with each other.
The data is fed into a generic mortgage processing model that allows
lenders to evaluate their operational costs, quality and productivity
against the benchmark. A management report will be produced for each
participating lender highlighting their strengths, weaknesses,
opportunities and threats as well as innovative and workable
recommendations to add value to their strategic planning process.
Additionally, Vertex Financial Services provides a presentation to each
participant's senior management team highlighting the key findings.
Confidentiality of participants' data will be ensured throughout the
process.
