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The majority of mortgage servicing in the UK is outdated and no longer up to scratch,
according to Phoebus Software, the software house for lenders. The IT specialist
warns that in today’s mortgage market, legacy mortgage servicing systems can no
longer do the job required of them. TCF and Mortgage Pre-Action Protocol require
a higher level of interaction with customers, and outdated software systems are
unable to cope with the demands of the changing marketplace.
Phoebus Software is campaigning for the FSA to raise servicing standards in the
industry, making it necessary for all lenders to show categorically they are treating
customers fairly.
Paul Hunt, managing director of Phoebus Software, said, “A large proportion of the
mortgage market still operates on legacy IT systems – some now more than a decade
old. It’s no surprise lenders and servicers aren’t able to implement new TCF compliant
collections strategies using those IT platforms. But it shouldn’t be allowed to
continue – the mortgage market is a very different beast now than it was even just
two years ago. If the FSA is serious about getting TCF ingrained in lenders and
servicers, they have to be tough on the systems they use. We need a co-ordinated
effort in the industry to invest in improving the mortgage market and the way all
lenders and servicers operate. The longer we ignore it, the more borrowers suffer.”
With house prices falling and unemployment on the rise, lenders and servicers cannot
afford to hide behind benign market conditions. Aside from the commercial reasons
for improving collections strategies, TCF is a growing concern for all lenders.
But too many borrowers continue to be treated in the same old fashion.
Phoebus Software says if the FSA is serious about getting lenders and servicers
to be TCF compliant in this market, they must address the appalling lack of investment
in technology to support TCF collections.
Paul Hunt continued, “There’s a misconception that lenders and servicers can’t afford
the up front cost of improving their IT platforms. Phoebus runs a “pay as you go”
system so we help lenders to grow their servicing as they grow, and can afford it.
“It’s vital that the industry and the FSA address lenders and servicers’ inability
to treat customers fairly. Legacy systems are for a legacy mortgage market. We have
a chance to improve the mortgage market – we should be grabbing it now.” |
