Mortgage brokers will soon have a new pipeline through which to send deals to many of the country’s top lending institutions.
Lendesk Technologies, a Point of Sale system provider for the mortgage industry, today introduced the Lendesk Lender Network, a direct-to-lender mortgage application.
The network so far consists of many of Canada’s top lenders, such as Scotia Mortgage Authority (Scotiabank), First National Financial, CMLS Financial, Equitable Bank, Merix, NPX, Lendwise and Manulife Bank, with additional lenders to be announced in the coming months. Lendesk says it expects to be able to facilitate more than 85% of the broker channel volume by the end of 2019.
The platform has already won the support of its partner lenders who see it as improving broker-lender communication.
“CMLS is committed to the broker channel and to engaging with its broker partners in ways that enhance the flow of communication, data and documents,” said Dan Putnam, SVP Business Development, CMLS Financial. “The Lendesk Lender Network launch should help enhance all of the above.”
Using Lendesk’s proprietary technology platform, licensed mortgage broker firms and agents will be able to securely pull credit from both Equifax and TransUnion and, through the Lender Network, automatically submit qualified mortgage applications directly to participating lenders.
“The pathway to submit an application to a lender has traditionally been tightly controlled in the industry,” says Alex Conconi, CEO of Lendesk. “As a result, there has been very little innovation related to what data is transferred, and how that process can be modified. The key benefit of the Lendesk Lender Network to brokers, lenders and borrowers alike is the beginning of a new, independent ecosystem of innovation in the Canadian mortgage broker channel.”
While the platform is currently in pilot form, brokers will be able to use Lendesk’s existing marquee product, its Point of Sale system, which is built on top of the Lender Network and communicates directly with the lenders. Lendesk expects to begin onboarding brokers to the network from its Early Access List by early 2019.
Conconi adds that Lendesk takes a holistic approach to the origination process, making the submission process as seamless as possible by allowing the broker to generate, gather and store documentation associated with the application.
In some cases the relevant documentation can be obtained directly from the source, such as a bank for down payment confirmation or an appraisal management company for asset valuation.
“A broker could obtain a document directly from the source using a Lendesk direct-from-source integration and submit it directly to the lender from within Lendesk without the broker or the client ever having to print, scan, email or sign-in to another system,” Conconi noted. “The result is a better experience for the client, improved communication for the lender and a more organized and efficient workday for the broker.”
When asked about the advantage of brokers using a third-party platform to submit deals as compared to brokerage-owned platforms, Conconi says he has noticed some concern from brokers about the use of brokerage-owned systems.
“At the end of the day, it’s up to brokers to try and find the best tools possible for their business. As entrepreneurs of their own business, it’s not surprising that many brokers want to maintain some amount of technology independence,” he said.
Announcing the Lendesk Lender Network is just the latest in Lendesk’s efforts to facilitate and improve broker-lender communication, says Conconi. “This announcement is evidence of the significant investment we’ve made to improve the mortgage origination process for all parties and is indicative of more exciting things to come.”