Tag Archives: Mortgage Trading Exchange

Little Known Facts About Electronic Trading

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!

Mortgage Brain Ireland

Did you know that Mortgage Brain doesn’t just operate in the UK? In 2003, we branched out to the Republic of Ireland, launching a mortgage solution system for Irish brokers, lenders and consumers.

Who is Mortgage Brain Ireland?
Mortgage Brain Ireland has held the exclusive distribution licence for our software in the Republic of Ireland for over a decade. Just like Mortgage Brain, our Irish counterparts are the leading providers of mortgage software, with many individual advisers and broker companies currently using the software. They have also created Ireland’s first free mortgage comparison and calculator app: IrishMortgages. This is equivalent to the UK app UKMortgages.

What is the IrishMortgages app?
The app was launched last year, and is the first free mortgage comparison app in Ireland, having been used over 30,000 times by Irish consumers in the past year. It allows users to explore various mortgage and affordability options throughout the country. The app also enables users to find a qualified Irish broker to assist with the process.

It incorporates a mortgage calculator, which is able to determine the cost of a mortgage per month, the deposit size, and the income an individual will need for this size mortgage.

IrishMortgages then calculates how much someone can borrow, based on the latest Central Bank lending rules, which are updated daily. The app also keeps a clear record of all searches done, which is a handy comparison and tracking tool for consumers.

How can an app like this help?
The mortgage app is particularly useful in Ireland as there is a national problem with individuals not understanding mortgages correctly.

Research has found that almost seven out of ten people in Ireland don’t know how much interest they will pay their lender over the lifespan of their mortgage. This highlights the need for the work being done by Mortgage Brain Ireland to teach and inform consumers.

What else does Mortgage Brain Ireland offer?
Just like Mortgage Brain in the UK, Mortgage Brain Ireland offers Mortgage Trading Exchange (MTE), which speeds up the mortgage application process considerably.

The MTE software permits brokers to trade electronically, allowing them to send, track and view applications and documents online. This eliminates the need for paper, thus enabling the process to be a lot smoother.

The Association of Expert Mortgage Advisors (AEMA) has also recently adopted Mortgage Brain Ireland. AEMA account for almost 50 percent of mortgage broker business in Ireland and are implementing MTE from Mortgage Brain in their move to an electronic mortgage-trading platform.

Lenders only need to integrate MTE once into their back office – there’s no need to build and maintain multiple bridges to systems from different broking firms. This saves both time and money.

What is the overall goal for the company?
Mortgage Brain Ireland estimates that, over the next four years, the industry could save €12 million in both cost savings and productivity, so long as both brokers and lenders adopt this standard electronic mortgage trading platform.
Therefore, the end goal for Mortgage Brain Ireland is to make the mortgage application process digital and establish a common trading platform for the industry as a whole.

As previously mentioned, research has shown that consumers in Ireland are not completely clear when it comes to mortgages and the process it entails. Mortgage Brian Ireland is aiming to provide support and information in order to educate consumers, ensuring they are as informed as they can be about the mortgage process and know exactly what they need to do.