Gen H will show mortgage brokers the details of their clients’ credit commitments if it finds discrepancies during a soft credit search after a decision-in-principle has been submitted.
The fintech lender says: “Typically, lenders tell brokers that their client didn’t qualify for the loan they wanted, and provide no further detail.
“This lack of transparency causes unnecessary back-and-forth with business development managers, underwriters and clients, and results in stressful and at times costly delays.”
The firm says its move means that if affordability differences are found between a client’s declared credit commitments and bureau records, brokers will be able to:
- See the type and amount of the credit commitments limiting affordability
- Exclude a commitment because it will be repaid before the loan starts, or because the value is incorrect
- Share context with the underwriters for greater clarity and faster underwriting
Gen H senior product manager Luke Calton, says: “From first being conceived to final implementation, this feature took almost two years to release as we explored important data privacy questions.
“But in researching this with brokers, we saw how frustrating it was to encounter a ‘computer says no’ experience with the credit file.
“We have access to this information, but we were never able to openly talk about it with the customer’s best interests in mind. I’m pleased that now, we can treat brokers like equals when it comes to the information we find on the credit report.
“This transparency is in the customer’s best interests, and I’m sure it will lead to a faster and smoother application process for all involved.”
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