by Ken Scott, Chief Executive Officer, Intellexis Plc 

Ken Scott Lofthouse, Chief Executive Officer, Intellexis Plc

Being no stranger to electronic trading in the business world, it is no surprise that the Mortgage Trading Exchange is having such a significant impact on the way mortgages are submitted and administered, as it streamlines business processes across the board. Lenders accounting for in excess of 70% of all UK mortgage lending have committed to accept electronic business via the Mortgage Trading Exchange, with many already doing so.

What this trading platform does is to allow the electronic submission of mortgage applications and AIP’s direct from the mortgage sourcing engine* a tool used by the majority of introducers, straight into the lender’s back office system. Recent research conducted by Mortgage Brain showed that 80% of the introducers who responded said that online agreements in principle or applications were important, very important or essential to their business – so the arrival of electronic trading has not come a moment too soon.

This was certainly proved to be true as over £100 million was transacted in the first month since launch in August 2003. Volume has significantly increased since then, as the following lenders are all now accepting business via this channel: Alliance & Leicester, Bank of Scotland, Halifax, Nationwide, NatWest, Northern Rock, Royal Bank of Scotland and UCB, with many others following close behind.

Simplicity not complexity

Ease of use is one of the key requirements of any introducer initiative – and the Mortgage Trading Exchange is no exception. It provides a consistent look and feel, navigation, registration and password process (subject to lender support). Plus an easy to complete onscreen application form that is submitted direct to the lender’s back office system so you get that all important response in minutes!

Efficiency and accuracy

A key efficiency of this type of mortgage trading platform is that any client information captured and/or stored within the sourcing system is seamlessly transferred into the lender application form; in fact, up to 65% can be pre-populated, negating the need for time-consuming re-keying and hopefully improving pre-submission accuracy.

Onwards and upwards

As the number of mortgage lenders increases, a standard application and submission process is more of a need to have than a nice to have. Agreements in principle or applications can be stored part-completed then validated prior to submission again, reinforcing the message that electronic trading system is a step ahead of the rest.

Submission, notification and tracking is quick and efficient for both lenders and introducers, as client information can be simply transferred to another form if the decision received results in a re-submission to another lender – that has got to be a winner!

Comply and conform

As we countdown the days to ‘Mortgage Day’, most of us are making important business decisions about the future – whether to be directly authorised or directly regulated, what training and competence requirements and reporting need to be implemented and where to obtain the essential point of sale information needed to provide to a client. Using the MTE, an introducer can request a ‘penny’ accurate Key Facts Illustration (KFI) and supporting lenders will receive this request and return the information to the requestor automatically.

The future

One thing is for sure, 2004 is going to be a year of challenge and change for everyone in the mortgage market. We are really excited about the growth in the electronic market place. As more lenders become available, we are experiencing an influx of introducer registrations and transactions – for many it is becoming their normal submission channel, saving time and resource – and getting it right first time, every time.

*Mortgage Brain, Mortgage 2000 and soon to be TMOS.

About Ken

Ken has a rich background in business leadership and commerce, a great deal of which has been gained in financial services. A Fellow of the Chartered Institute of Bankers with a Diploma in Business Administration from INSEAD and an Executive MBA from Harvard Business School, he has for the past 2 years been CEO of Intellexis plc, a London listed education and training consultancy. His previous roles include positions as UK country head for Avco Trust (consumer and business financing), CEO of Hamptons Estate Agents, Group Marketing Director of Bristol & West and Regional Director for one-fifth of the UK retail branch network of HSBC.

Ken has a strong background in business management and sales and marketing of financial services products and related offers. He is a strong advocate of customer retention activities and of seeking ways to gain long-term competitive advantage. In his current role, he re-directed Intellexis from imminent financial failure and set it on course for a profitable future.