MQube Mortgages Go Live On MAB With Companies Working On AI-Based Fact Finding – Exclusive
MQube’s mortgage-for-rent offering, MPowered Mortgages, has been brought online with Mortgage Advice Bureau (MAB) and is expected to continue to roll out in the brokerage market over the next two months.
The companies are also working on an artificial intelligence (AI) system to connect the lending process upon initial discovery of the broker’s facts.
MQube launched its loan brand alongside the lender hosting platform MPowered earlier this month and is now rolling out product availability to advisors.
This initial rental product offering is available to public limited companies, portfolios and individual owners and will soon be extended to multiple occupancy homes (HMOs).
Emma Hollingworth, Director of Distribution at MQube (Photo) Recount Mortgage solutions that in addition to the launch of MAB, agreements had been concluded with several distributors and would soon be operational.
“We had a smooth launch with five or six consulting firms each from five distributors because we want to make sure everything is well tested and ready for brokers,” Hollingworth said.
“We went live with TMA last week and MAB now and we have signed contracts with a lot of other distributors, so probably in the next six or seven weeks it’s fine, we’ll add them too.
“But we want to make sure that this is controlled, that it is a very good experience and that we provide the right service to the brokers,” she added.
AI-powered fact finding
For now, MPowered Mortgages’ unregulated rental products will appear through the mortgage networks and clubs search systems and advisors will then need to log into the MPowered platform to access and submit applications.
However, Hollingworth revealed that the company plans to have a straightforward process from fact-finding to underwriting, which is in the process of being developed as part of an innovation laboratory partnership with MAB.
“Right now we’re just a stand-alone system, but ultimately our vision is to connect fact finding to the underwriter in real time,” Hollingworth continued.
“We formed the Artificial Intelligence (AI) Lab with MAB to explore the opportunities we have to use AI and deep learning in the fact-finding process of brokers in the same way we do. do this in the subscription process.
“It is the plan to work with MAB to develop this process. “
Hollingworth was reluctant to put a timeline on such a development, but noted, “It’s a very nimble and fast-paced world. I wouldn’t say it will be long term, we’re not talking about years.
MAB said it believes implementing AI in the large-scale selling process will be the future of the mortgage market.
The brokerage company explained that by applying AI early in the sales process, it can reveal customer needs by analyzing the information provided in the mortgage application process, helping advisors make recommendations quickly. appropriate for the products and services.
Peter Brodnicki, CEO of MAB, added that the two companies share the ambition to use AI and deep learning throughout the mortgage process.
“We have a long-term mindset with this partnership and therefore we are delighted to continue to support MQube and MPowered as the mortgage application process evolves further,” he said.
MQube’s lender hosting platform and its own lending offering are both based on advanced use of AI, machine learning, and fast access to data.
And the intention is for this to continue with all third party lenders joining the system as well as any extensions to MPowered mortgage products.
“The system generally doesn’t ask for anything that we can’t get from the data sources or documents that are uploaded,” Hollingworth said.
“Our platform therefore reads these documents in real time, verifies these documents, reads the data and categorizes the data.
“Then the lender’s rules, policy and criteria are applied, so if a lender doesn’t accept someone with a county court judgment (CCJ), because we extract all the data in advance with a gentle search he will find it and tell the broker they cannot go ahead with the deal.
Given this approach, it will be critical that brokers have client documentation ready for upload when submitting the case, rather than waiting for underwriters to request them.
The system can also identify queries and ask the broker for more information directly as the case is submitted before going to an underwriter.
For example, if there was an unexpected cash deposit, it will ask what it is for and advisors can respond immediately.
“It’s not just automated vanilla data, it’s pretty complicated; we read rental portfolios, accounts, a lot of things, but we do it in real time, ”continued Hollingworth.
“This is presented to the underwriter who will then verify the file and it means that we can get certainty for the client with a binding initial offer. “
The backer of this £ 2 billion unregulated initial buy-lease offer, one of the world’s top 15 unnamed banks, is demanding a physical appraisal to confirm the loan.
However, Hollingworth noted that MQube has designed an “automated steroid valuation model” that uses approximately 180 bits of real estate data and provides an early warning to the broker if the values used do not match.
Once the physical expertise is completed and if everything matches, the offer is formalized.
All key areas of credit
Along with the wider distribution of its own products, MQube is in talks to add more lenders to the MPowered platform, although confidentiality agreements restrict many details.
But the goal is to cover all the key elements of the mortgage market.
“We are talking to a lot more lenders and funders and there will be more added to the platform in 2021 and when we can we will announce them,” Hollingworth said.
“It is our intention to be in all key areas of the loan, but this will be subject to our FCA approvals, and we will announce more about it when we have those approvals,” she added.
The MPowered line of unregulated rental mortgages includes two- and five-year agreements of up to 75 percent loan-to-value (LTV).
Rates start at 2.94 percent for a two-year solution up to 50 percent LTV for individual owners and all offers have a 1.5 percent product charge.
Owain Thomas is Editor-in-Chief and Contributor of Mortgage Solutions and Editor-in-Chief of Specialist Lending Solutions. He also has experience in the areas of protection, pensions, benefits and human resources. Owain won two Headline Money Awards and the Protection Review Journalist of the Year award.