Although electronic trading was greeted by brokers unenthusiastically upon its launch in 2003, it has since become one of the cornerstones of the mortgage industry. The simple idea, which began with our launch of Mortgage Trading Exchange (MTE), provided a way of delivering mortgage agreements in principle (AIPs), and processing applications seamlessly between brokers and lenders.
So, what’s happened since then? We thought we’d run down some facts you may not know about electronic trading, and how brokers have taken advantage of this fantastic weapon in their armoury.
Transactions have sky-rocketed
In the first year, around 150 transactions each week were being processed using MTE. Within a couple of years, this had changed to 2,500 weekly transactions, and now, there are between 4,000 and 5,000 mortgage transactions being completed via MTE – the total figure for electronic transactions via our system stands at over two million.
The mortgage sales process continues to be supported
Although some intermediaries were sceptical about it at first, electronic trading is actually designed to support brokers in completing the advice and sales process in, or away from, their office. It offers you offline access to lenders AIPs and full application forms, meaning you only need to go online to submit applications to supporting lenders.
It offers direct access to lenders
Systems such as MTE ensure that brokers can use lenders’ own application forms alongside the platform’s own generic ones. AIPs and applications sent using MTE also go direct to the lenders, without the need to pass through any other portal. It’s just like using the lender’s service, but with more flexibility.
The systems are compliant
Another worry about electronic trading upon its introduction to the industry was whether they would cope with the tough demands and requirements from the FSA/FCA. Fast forward to the future, and the systems have more than stood the test of time with regards to how compliant they are. They have faced hurdles such as MDay and the Mortgage Market Review and surfaced at the other end unscathed.
Flexibility is one of its main strengths
Electronic trading systems allow brokers to work offline and away from the internet. This means that if they client doesn’t have all the information to hand when the mortgage application is being filled out, the application can be stored and accessed at a later date. Most systems will also work with more than one sourcing system, or as a stand-alone application, to offer the broker more choice.
Electronic trading makes brokers faster
Short on time or under pressure? You’re not alone. Many intermediaries are facing the same problems; from other brokers, the internet, or customers with apps. The main problem is clear: competition is fierce, and in order to be ahead of the game, you need to be quick off the mark. Electronic trading can get you responses in less than a minute, and faster responses mean happier clients, more sales and greater efficiency.
Easy re-sending and tracking
Before electronic trading, having a client declined meant having to start an application from the very beginning in order to submit the same application to another lender. With systems like MTE, you can re-use data from a declined application and or AIP, saving you plenty of time and meaning you don’t have to fill out the same information repeatedly.
There are big names behind electronic trading
From its very beginning, electronic trading has had the support by many of the big names in banking. For example, our MTE system is jointly owned by Lloyds Banking Group, Nationwide Building Society, RBS, Virgin Money, Barclays and Santander – not only does this give you peace of mind that the system is safe and secure, it allows you to trade electronically with committed lenders who account for over 65% of mortgages provided by intermediaries.
Already using MTE? Then we’re sure you’ll be familiar with all the fantastic benefits an electronic trading system can offer you.
If this blog has made you think a little more about electronic trading, then you can start using MTE for free today. Simply download the system here, register your details, download your cookie/token, and submit your application forms. It’s as quick as that!