The reader poll showed a clear divide in opinion with 50 per cent of respondents voting underwriters with the most responsibility, and 50 per cent voted valuers and surveyors as having the most responsibility in the lending process. Other parties included in the poll were BDMs, the introducing broker, insurers, master brokers/ distributors and lawyers - however they were deemed with less responsibility as they each received no votes.
Agreeing with one side of the statistics, Terry Markham of the Funding Operation said: “I personally believe the role of the Underwriter is of the highest importance. Their role ultimately takes into account diligence on the applicant(s), the property, and the overall legalities involved in offering a loan, whilst the valuer is only concerned with the property.”
Terry believes that underwriters hold the highest responsibility because they protect their companies from fraudulent applications while ensuring cases are processed with a “very good chance of exiting”.
Ashley Ilsen of Regentsmead also agreed that underwriters are faced with the most responsibility, with other parties following suit, stating that they are “ultimately the ones signing off on loan agreements and assessing the clients suitability to take on the loan.” He gave an example of this, being the recent sub prime mortgage crisis in the states – “the main cause being poor underwriting standards,” he explained.
Also agreeing with the B&C results, Ian Ferguson, Head of Underwriting at Finance 4 Business, commented that the ultimate sign off for any deal lies with the lenders underwriters/credit department, where if there is a default, the liability will be theirs.
“The surveyor, likewise, is placing his professional reputation on the valuation he places on a property, which can make or break a deal at the outset. In the longer term, again in any default situation, the surveyor’s original opinion on both MV and FSV will be key.”
Ian added that if asked who holds responsibility throughout the journey of a transaction to ensure that it completes in a timely manner, the “other parties would be at the table.”
Ian said that if he was to put the parties in order of holding most responsibility, it would start with the Lender with most responsibility, with the insurers coming last.
Keith Aldridge, Managing Director of Capital Bridging, however disagreed with the results, stating that he was “very surprised” that lawyers and brokers got no votes. “Certainly we expect our carefully selected brokers to take responsibility for their introduction by carrying out their due diligence ahead of submission, a priority responsibility from day one. Our carefully selected lawyer panel has, without doubt, a major responsibility in ensuring the case progresses without any unnecessary delays.”
Keith added that he believes bestowing responsibility evenly on all parties involved in getting a case over the line has proven to drive outstanding performance.
“If all parties communicate in a proactive manner (actually talking to each other), then everybody shares the responsibility and you end up with a happy client who appreciates that a successful completion requires all parties to do their job and results in a clean exit in due course,” he said.
Also in disagreement with the poll data, Eugene Esterkin of Affirmative Finance Limited, believes that responsibility is mostly with lender, as they “get the right team and instruct them correctly”. “The lender cannot abscond from the responsibility - it has to gather the detail and consider it fully,” he added.
However, Eugene admitted that “each role is critical.”
Stephen Burns of Adapt Finance, also joins in disagreement with valuers holding 50 per cent of the votes, stating: “It’s the digital age…access to tools in order to form accurate valuations is now available to all.”
“Underwriters make decisions based on information provided. It is the broker who does all the donkey work in order to provide such. That said, all these guys form an important part in the process,” he added.
When asked why he thinks the two parties were deemed with most responsibility, he said that they are probably viewed as the most ‘professional’ of the bunch. “Let’s face it, underwriter does sound posh!”
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