In light of the imminent regulatory changes from the Prudential Regulation Authority relating to the underwriting of buy-to-let portfolio properties, eTech has developed an end to end web based solution, designed to solve the administration burden on brokers during the underwriting process, while providing a platform for lenders to make accurate loan application decisions.
The PRA SS 13/16 landlord underwriting standard comes into effect on 30 September.
eTech specialises in building software solutions for the property services industry. For this particular project it partnered with OneSavings Bank (OSB) alongside several other lenders.
The Hub offers a web based system, easy data inputting and uploading portfolio data from any Excel spreadsheet, automatic property verification tools, instant application submission in real-time and re-use of data for re-submission.
Lenders have the ability to configure and control their own defined rule parameters within the Hub, against interest rates, thresholds and tolerances, enabling applications to be automatically verified to check they meet the correct criteria before being finally underwritten. Once a broker submits a property portfolio the underwriter can perform automated stress testing against broker submitted property values or AVM’s including Rightmove, Core-Logic and Hometrack, resulting in a PDF summary report. Lenders are then able to assess each application in real-time, knowing that all criteria have been met and all within the PRA underwriting standards.
The Buy To Let Hub is due for release at the end of August.
Mark Blackwell, lending and surveying services director at eTech, said: “This is the first time industry standards have focused on bricks and mortar assets rather than people. This significant change brought by the PRA underwriting rules provided eTech with the right opportunity to develop a web based software solution that not only saves time but significantly improves property risk management.
“The mortgage market is embracing new technologies more and more which will lead to increased data sharing amongst lenders and other stakeholders in time. Our Buy To let Hub will look to address these future technology and data demands as we do in our other lending and surveying solutions.
“A number of lenders, intermediaries and mortgage distributors recognise the need for an industry wide solution to address these new rules. We are in a position to not only provide this but give the tools and controls to lenders to configure the Buy To Let Hub to suit their risk appetite and their interpretation of the new Underwriting standards.
“Working with OSB is very exciting for eTech and their absolute focus on making themselves easier to deal with and to be at the forefront of the specialist lending market is evident in our collaboration with them.”
Richard Wilson (pictured), group chief credit officer at OneSavings Bank, added: “The balance of ease of use and stress test outputs in a clear format for our underwriters is a real selling point for the system. We have been working closely with the eTech on the evolution of this software and see it as a key part of our SS13/16 delivery journey.”