Mark Blackwell explores how deeper insights can revolutionise efficiency and growth in mortgage valuations.
We talk a lot about how valuable more granular management information data is and about how technology can give us access to insights that allow us to maximise efficiency and grow our businesses.
Most of us understand this concept but it’s harder to picture the detail and the power it could have. In the world of mortgage valuations, this is largely because we’re very much at the start of the journey. The process of panelling out valuations to many thousands of surveying firms has been managed externally and the systems through which it’s happened haven’t changed in almost 20 years.
For some lenders, the old adage “if it ain’t broke, don’t fix it” often holds serious weight when considering this. On the one hand, conceptually they may be able to see that things could be done better, and more achieved, using more modern technology and data capture. On the other, the inherent risk that the applecart is upset in the process of changing systems and procedures deters action.
Until very recently, those risk averse voices have had a point – accessing better data capture by adopting new technology has meant costly integrations, patching legacy platforms and the dangers associated with transferring highly sensitive customer data.
But capturing new data in the pursuit of better property risk management is now a regulatory must-do. The decision to improve and benefit from the scale of efficiencies that modern valuations technology can bring is not either/or anymore.
At Cotality we are delivering this now. We’re connecting lenders, panel managers and surveyors through our Lender Hub without the need to integrate platforms. Because we operate on a web-based platform, service functionality is flexible and can be plugged in or out as needed.
Data driven decisions
In practice, what this means is capturing more data, more consistently and – critically – having that data in a format that allows lenders to use it to maximise their margins. Quicker better decisions mean a better broker experience.
Understanding efficiency measures comes down to two things: how long the mortgage valuation takes to complete and how many man hours it requires. Where you rely on managing multiple panels to scale instruction volumes up and down as needed, tracking why these two variables change is impossible to do accurately.
By managing instructions through one hub, possibilities suddenly become real. It becomes possible to book a valuation with the surveyor best able to carry it out quickly. Multiple user access to the system allows all parties – broker, surveyor, underwriter and ultimately the lender and customer – visibility of progress. This allows delays to be flagged early. It’s possible to ascertain what is behind a delay. Once you know that, you can change your approach to remove it on the next instruction.
Improved PVQs
Post valuation queries (the bane of so many in this industry) can be captured. What the query is, who made it, what the response is, whether the response has been given in a timely manner is all at your finger tips.
This information allows lenders to improve the process, cut the time it takes to close out the valuations aspect of the mortgage application, minimise the administrative burden on all parties and deliver a slicker service to advisers and their clients.
Lenders have evidence on which to base panel decisions and tools to increase returns.
Putting the customer first
Under consumer duty rules, having a clear picture of the interaction with a retail customer allows lenders to assess potential pinch points and flag vulnerability risk early. It allows lenders to have a robust process to handle consumers and excel at it. Managing third party providers becomes simple and effective almost overnight.
Technology advances tend to come in spurts, with transformative change sometimes crammed into a brief period before the market takes time to adapt. This is where we are at the moment in valuations management.
Clear, measurable insight into process efficiency is suddenly achievable. The process is transparent, trackable and, consequently, easily improvable. Customer service, administrative burdens placed on intermediaries having to deal with frustrated borrowers – managed.
The market can work better for lenders, valuers, brokers and their end borrowers and there are already early adopters seeing the benefits. Those that are embracing this notion are making tremendous inroads into old ways of doing things and gaining a huge advantage as they do so. Why wouldn’t you?
