Winners of the Mortgage Finance Gazette Awards 2012
As we come towards the end of another tough year for the mortgage market, lenders and suppliers gathered in London for the Mortgage Finance Gazette Awards, which recognise achievements within industry
Winners of the Mortgage Finance Gazette Awards were invited to an informal awards presentation along with those organisations that were highly commended.
There are two parts to the awards – the Nominated Awards and the Best Mortgage Product Providers. The process for the Nominated Awards involves nominations from within the industry and a judging panel then chooses the winners. This year’s judges were Diana Wright of the Sunday Times, Bernard Clarke of the Council of Mortgage Lenders, Paul Broadhead from the Building Societies Association, Ben Wilkie who is Editor of What Mortgage and Joanne Atkin, Editor of Mortgage Finance Gazette.
The Best Mortgage Product Providers are deciphered independently based on a variety of analytical data compiled by financial research company Defaqto.
For Best Overall Lender, Building Society and Bank categories, Defaqto looked at the competitive positions of the provider offerings taking into account a mix of mortgages available for house purchase, first-time buyers and remortgage. It used a variety of fixed, discounted and tracker mortgages, as well as loan-to-values, application fees and no tie-ins beyond the initial rate period.
For the Best Lifetime Mortgage Provider and Best Buy-to-Let Mortgage Provider, Defaqto took into account a mix of interest rates, loan-to-values, fees, plus features and options. Defaqto’s Star Ratings for building, contents and buy-to-let insurance, and MPPI were used as the basis for the Best Overall Insurer category.
NOMINATED AWARDS
Community Services Award for Small to Medium Sized Lenders
Winner: Darlington Building Society
Darlington won this award for its support of the Armed Forces. The society has designed an exclusive mortgage product for members of the armed forces who often have problems obtaining a mortgage - status checks can be complex and they can find it difficult to prove residency, particularly if based abroad.
Darlington has also raised over £15,000 for the Durham Light Infantry Memorial Appeal, which needs £75,000 for a memorial at the National Memorial Arboretum in Staffordshire. In 2011 the society incentivised its members to vote at its AGM by donating 50p for every online vote cast and 35p for every paper vote cast, in support of the DLI Appeal. The society then launched a DLI Affinity Mortgage with a £5 million tranche and for each completed mortgage, £250 is donated.
The society also came to the financial rescue of a Memorial and Thanksgiving Service at York Minster for 4th Mechanized Brigade and Task Force Helmand on their return from Afghanistan to honour 72 soldiers who had lost their lives. Due to an oversight, a number of associated costs had been overlooked and these were only discovered five days before the service was due to take place. The society covered all the outstanding costs and became the Service Benefactor which meant the event could continue as planned, without disruption.
Highly Commended: Hinckley & Rugby Building Society
Hinckley & Rugby Building Society generates a huge amount of positive community activity in its heartlands of Leicestershire and Warwickshire. Staff members volunteer their time spending up to three paid working days each year volunteering in the community. It has an affinity savings account with three local hospices and an annual budget of £5,000 for small donations to local good causes. For every vote cast at its AGM, the society donates to a local children’s hospice.
Highly Commended: Ipswich Building Society
Ipswich Building Society has a comprehensive programme of community services. The society felt that its local community had an affinity with the residents of Ipswich, Australia who had been badly affected by severe flooding. The Ipswich United fund was set up with the support of the local newspaper ‘Evening Star’, and raised over £14,000. It has also sponsored a local Paralympics athlete, Caroline Maclean, donating £4,000 per year over three years to support her in the Wheelchair Basketball games in London 2012. And staff are allocated half a day per month towards any voluntary work.
Community Services Award for Large Lenders
Winner: Leeds Building Society
Supporting the communities within which Leeds Building Society operates is at the heart of the organisation. While the sums generated are in millions, it is the contribution of staff who give their time and expertise that really makes the difference. Leeds Building Society’s Charitable Foundation made a donation of £10,000 to Leeds Mencap to transform its facilities. But the society also provided skilled staff to carry out the work free of charge and engaged with local contractors, who supplied free labour and materials - this staff input has delivered in excess of £30,000 of value.
Leeds Building Society Charitable Foundation has donated over £1 million to more than 1,300 worthy causes. Match Funding means the society will match any sponsorship up to £400 per member of staff and this scheme is actively promoted and well utilised.
Society staff choose which charities to support and these were St Gemma’s Hospice and Martin House Children’s Hospice. The priority was to involve staff in events, all of which took place outside working hours. In its third year, this initiative has exceeded its £10,000 per annum fundraising target in addition to the significant time contribution made by many staff members.
Highly Commended: Northern Rock
Community is at the core of Northern Rock’s business strategy which is framed and communicated through four Cs – colleague, customer, company and community. Community within Northern Rock is about giving of both time and money. The Samaritans is Northern Rock’s corporate charity of the year but it also works with a number of good causes: Women's Aid - a fight against domestic violence - The Cyrenians who operate refuges for the homeless around the UK, Shelter, Crisis, The People's Kitchen and a partnership which enabled a small community-based bank to relieve the financial hardship of individuals and families resulting from poor money management, unmanageable levels of high interest debt and no savings.
Excellence in Treating Customers Fairly – Lenders
Winner: Teachers Building Society
TCF is ingrained into the culture at Teachers Building Society with on-going training from induction courses to annual TCF refresher workshops for all staff and annual TCF training for the board directors. All staff complete TCF surveys. There is a special mailbox for confidential emails so staff can give feedback on board and management delivery of the TCF culture, and on decisions that may impact on the fair treatment of customers. TCF forms part of the personal development review process, against which all staff are rated.
Customer satisfaction is measured through customer surveys and every comment is acted upon. Results are circulated monthly and 96 per cent of responses received in 2010 rated the society as ‘good’ or ‘excellent’. There are also more in-depth phone surveys. In 2010 the complaints ratio was extremely low at 0.02 per 1,000 accounts. The FSA is also satisfied with Teachers’ TCF policy.
Highly Commended: Hinckley & Rugby Building Society
Treating Customers Fairly is a way of life for Hinckley & Rugby and its staff. So far this year 100 per cent of Hinckley & Rugby borrowers said they would recommend the society to family and friends. The perfect scores are particularly good achievements as mortgage lending, applications and enquiries have all risen this year. When a new savings account was launched recently 100 per cent of respondents found staff “very helpful” or “helpful” and 100 per cent found the process straightforward and rated the total service “good” or “very good”.
Highly Commended: Yorkshire Building Society
Fairness is one of Yorkshire’s values and underpins the society’s entire approach to business and how it treats customers. The FSA has consistently confirmed that TCF and its underlying principles are well embedded across the Yorkshire’s activities. Piloting a new approach to building society supervision the FSA chose the Yorkshire as the best society to test it out, provide feedback and help determine the best way forward for implementation. Yorkshire provides TCF training, staff forums, a dedicated intranet site and a range of customer feedback mechanisms.
Excellence in Treating Customers Fairly - Non-Lenders
Winner: LSL Corporate Client Department
For LSL Corporate Client Department (CCD), TCF is embedded in the culture of the company from staff training to systems, auditing and complaints handling. LSL CCD was the first asset manager in the UK to secure ISO 9001:2008 accreditation.
Any complaints are logged and regularly reviewed with full analysis to ensure corrective and preventive action to reduce future complaints. Phone calls are recorded and evaluated via sophisticated telephony to monitor quality and service delivery.
All contractors on LSL CCD’s independent panel undergo quarterly reviews as part of its Quality Assurance Plan. Contractors are benchmarked with satisfaction questionnaires, turn around time analysis and independent property inspections. Work is then allocated on a performance ranking. LSL CCD performance manages to ensure an appropriate agent is used first time round and it undertakes telephone mystery shopping. Management Information is used to analyse the individual performance of client teams and the overall benchmarking stats for all corporate clients.
Highly Commended: United Legal Services Ltd incorporating eConveyancer
eConveyancer was designed around Treating Customers Fairly, it is central within the organisation which continues to strive to improve its service by responding to client feedback.
The eConveyancer model allows intermediaries to quote and instruct solicitors as well as allowing them and their clients to track the progress of cases online 24/7 or receive email and SMS updates. The eConveyancer panel solicitors compete on price and service thus embracing TCF while enabling the intermediary to earn from conveyancing but not at the expense of their client. The panel is managed closely to ensure they meet eConveyancer’s service levels. Customers and introducers provide visible feedback on each case that completes. eConveyancer’s case tracking and notes facility keeps clients and customers fully informed at each step along the way and there is a help desk.
Innovator Award for Small to Medium Sized Lenders
Winner: Newbury Building Society
Friend of First-Time Buyers - Newbury has developed a range of initiatives for local first-time buyers, not only to help them buy their home, but to provide environments to help them understand their options.
First Step, Next Step is a scheme developed in partnership with West Berkshire Council to help local people who are unable to raise the full deposit. Introduced initially for first-time buyers the scheme has now been extended to homemovers to enable them to move up the ladder, so more affordable properties become available for first-time buyers. Buyers need a minimum deposit of 5 per cent and the council will lend up to £20,000 towards the rest of the deposit. No interest is charged on this loan and it represents a percentage stake in the property, repaid when the property is sold or after 10 years (whichever is sooner).
The society’s first-time buyer offset also requires a 5 per cent deposit but in addition one or two family members deposit 20 per cent of the purchase price in linked savings accounts.
The society launched in-branch Mortgage Help Centres while a roadshow serves people who are unable to make it to a branch. Regular seminars are also held in branches which cover a range of topics, such as affordable housing, mortgages and the Government’s FirstBuy scheme.
Highly Commended: Darlington Building Society
Darlington was the first building society to launch an iphone app. Free to download, the app contains information about the branch network and includes photos of the society’s 13 branches and their managerial staff as the society felt it important to personalise its services. A location map of the North-East operating area allows the iPhone user to locate the nearest branch to their current location using GPS.
Also included is a mortgage calculator allowing users to work out the cost of a mortgage, interest rate and term. A similar savings calculator allows users to work out how much interest they will earn on their savings over a set term at any rate of interest. A link is also provided to the society’s website which is updated internally and any amendments to the website are automatically uploaded onto the iPhone, so app maintenance is minimal.
Innovator Award for Large Lenders
Winner: dbda/Nationwide Building Society
dbda developed the online First Time Buyers’ Guide for Nationwide. The First Time Buyers’ guide is independent of Nationwide’s products and services and covers all of the steps involved in buying a first home - from deciding whether to rent or to buy, through to choosing a mortgage, making an offer, surveys and insurances, contracts and completion through to moving in.
The guide includes interactive, online and accessible information available in one place. There is also a ‘read aloud’ function for those who would rather listen to the guide and a PDF version for users to print and read later. It goes through 12 easy-to-understand steps to buying a first home, the pros and cons of buying and renting, a comprehensive glossary explaining property buying ‘jargon’ in simple language, a ten point action plan on buying a house and moving in, suggested questions to ask a mortgage advisor and a list of useful contacts detailing where to go for further questions and advice.
Highly Commended: Accord Mortgages
The Hybrid Tracker to Fix Mortgage was developed in partnership with Concordia and originally launched as an exclusive in March. It was launched to all Accord’s distribution panel in July and has become one of the best selling products in Accord’s range. There are offset, 75 per cent and 85 per cent LTV versions of a two-year BoE tracker followed by a three-year fix.
The fixed rate is set at the outset meaning the borrower knows exactly what they will be paying after the initial tracker period and the fixed rate date is pre-determined. There are no additional fees when the product moves to the fixed rate. Unlike some lenders offering drop-lock mortgages, Accord will not re-assess the LTV of a property when the time comes to switch to the fixed rate period, therefore avoiding a refusal to switch or a higher rate being charged because of an LTV crossing a threshold level.
Innovator Award for Non-Lenders
Winner: myhomemove
myhomemove’s new and interactive eWay service blends technology with a personal, professional conveyancing service. eWay is a secure online casefile that contains copies of all relevant conveyancing documentation as soon as they are available. Clients are notified when documents requiring their attention have been uploaded to their eWay file, for example, the mortgage offer, and are provided with clear instructions on the action they need to take (read a document, complete an online form, print and sign, etc). The eWay file can be accessed via a PC or smartphone.
All post is scanned from 5.30am in the dedicated data processing centre and attached to the correct part of the electronic casefile using a variety of technologies including Optical Character Recognition, bar coding and case logic flows to ensure that documents are identified and attached correctly. Working with electronic documents reduces the paper usage for a typical conveyancing case by around 85 per cent.
Highly Commended: Countrywide Conveyancing Services
Countrywide Conveyancing Services provides a separate representation service to mortgage lenders. This involves a separate client accounts team so no one person is responsible for funds. Instructions are sent electronically and cases are set up in real time. Each case goes through a workflow-based case management system and there is a dedicated post-completion team which focuses on registrations.
Highly Commended: xit2
The Arrears Management Portal is a secure web-based communication system that allows lenders to send bulk electronic instructions to field agents. Agents pick up client details and required outcomes and detailed reports are sent back to the lender. The system creates audit trails to evidence effective client management meaning lenders can make informed decisions on each customer account in arrears. This information is stored securely in a central hub giving the lender and field agent easy access to historic customer file information.
Best Use of Technology – Technology Providers
Winner: Phoebus Software
Phoebus Software has developed its migration and integration mortgage solution so clients can take on new portfolios very quickly. Development of the software is through investment in technology and working in partnership with its clients.
The Phoebus migration toolset can cope with differing levels of automation depending on the complexity of the data being migrated and the quality of the account record history held on the legacy platform. In the last 18 months Phoebus has migrated over 20 portfolios of differing size onto its platform on behalf of clients, with the largest migration involving 300,000 accounts from three different systems. In addition, the same technology has also been used to take originations from third party solutions seamlessly onto Phoebus’ servicing platform without the need for any re-keying.
Phoebus manages assets of over £20 billion for 50 lenders and portfolio owners and has made nine new client sales in the last three years. Five third party servicers now use Phoebus to undertake their administration activities.
Highly Commended: LSL Corporate Client Department
LSL Corporate Client Department’s clients have access to its web based case system called Jigsaw. Clients can view every document that is attached to any of their cases and can audit the firm from their own office. The audit team can make sure that all case handlers are achieving the best price, in the shortest period of time and at the lowest cost. Suppliers can upload reports and documentation direct onto Jigsaw.
Highly Commended: The Charlbury Group
The Charlbury Group has invested in the development of a Field Agent System to ensure that instructions from lenders can be passed quickly to the relevant field agent firm and reports can be returned electronically. The system supports multiple integrations from firms throughout the arrears management process including asset managers, solicitors and other field agent firms enabling the quick and efficient flow of information. There is no need to re-key data into multiple systems which saves time and removes the opportunity for errors for both lenders and their suppliers.
Highly Commended: xit2
xit2’s Asset Management Services help lenders manage portfolios of distressed properties including managing clients in arrears, properties in possession, the physical taking back of property and buy-to-let properties in receivership. A series of web based workflows allow lenders to communicate with asset managers and their contractors creating a clear view of each property or customer interaction.
Best Use of Technology – Lenders and Technology Providers
Winner: Avelo and Nationwide for Intermediaries
Nationwide Building Society chose Avelo to work in partnership to build a replacement solution for all of the Nationwide mortgage sales and origination systems (MSO). The launch of MSO has supported Nationwide by increasing business volumes, reducing application to offer times and cutting the number of processing resources. It has reduced costs, increased efficiency and flexibility to deliver a better service to mortgage customers - direct applicants and intermediaries.
The Avelo MSO solution is being phased in across the society initially through the Nationwide intermediary mortgage business. Next year it will roll out to the branch network, call centre and online consumer channel. Key benefits and features of MSO include a single, modular technology platform; fully integrated insurance and protection cross sales; scan documents straight into the case; fast DIP decisions with the ability to change data to re-process the decision without leaving another footprint; reserve a product without yet knowing the property; fully automated third party service integrations; fully automated instant offer at point of sale; and real time case tracking.
Highly Commended: DPR and Kensington
The technology Kensington Mortgages selected for its ‘E-KWIP’ platform in preparing for a return to lending was an origination suite based around DPR’s Rules Builder, Workflow Builder and Document Builder. Together, these tools provide an intuitive and easy to use front-end that allows non-IT users to rapidly model, test and deploy new and updated functionality in a fraction of the time and with fewer resources than would be required in a traditional software development setup.
Highly Commended: BancTec and Metro Bank
BancTec’s eFIRST Origin platform can be customised to meet the needs of individual lenders and deployed rapidly to allow new entrants to the market with minimum delay. The BancTec solution can cater for high volume mainstream lending operation, deployed in multiple locations for multiple branded lending activities. Metro Bank required an efficient and user friendly technical solution, one that could be used in the presence of customers; and also behind the scenes in the mortgage evaluation and processing activities.
Best Anti-Fraud Service
Winner: Quest
The Q-Guard fraud detection and prevention suite forms part of a lender’s risk management strategy. Integrating Q-Guard into a fraud prevention programme adds a new layer of risk analysis at the point of valuation. It provides a bespoke layer of security that integrates with the organisation’s existing mortgage processing and enables the lender to select the risk alert type that Q-Guard analyses for them, depending on their specific needs.
Q-Guard applies intelligent pattern-matching techniques and data analysis to assist in alerting the lender to potential areas of risk and reports any potential areas of concern or suspicious characteristics to the risk team for closer inspection. It helps safeguard mortgage lenders by offering a unique fraud analysis review and was the first tool of its kind to launch in the UK market. Clients are able to identify a broad range of risks from over-valuations to covert buy-to-lets.
Highly Commended: xit2
The Lender Conveyancer Exchange from xit2 is used by mortgage lenders to help identify mortgage fraud where solicitors are involved. It is a secure online database, hosting various key personal and conveyancing partnership data provided from a number of reliable data sites. These include PEP and sanctions lists, bankruptcy searches and media searches. The key differentiator is that all companies receive a personal visit to verify key personnel and capture vital data.
Lender Conveyancer Exchange is not just a registration scheme it is a full validation, registration and monitoring process aimed at benefiting the whole industry. Benefits include shortening the conveyancing process, reducing financial crimes losses, improving data management and security with improved communication between lenders.
Ecological/Green Award
Winner: Ecology Building Society
The C-Change Retrofit discount mortgage scheme, launched in 2011, offers discounts on Ecology Building Society’s standard variable rate for improvements achieved in a home’s Energy Performance Certificate. The scheme offers a discount of 0.25 per cent off Ecology’s SVR for each grade improvement made in either the energy efficiency or environmental impact rating of a property once works are completed – on the whole mortgage, for the full duration of the loan.
The launch of the C-Change Retrofit discount comes as momentum builds for a widespread drive to make our homes more energy efficient, with the Government finalising details of its Green Deal scheme. The majority of the UK’s 26 million existing homes are wasting huge amounts of energy and money every day, posing a significant challenge to our efforts to reduce carbon emissions. Our homes currently account for over 27 per cent of CO2 emissions. Ecology developed the C-Change Retrofit discount as a response to this challenge and to incentivise sustainable living.
Best Law Firm
Winner: Optima Legal
Optima Legal specialises in property and secured debt recovery services for the lending market. The firm’s approach to working with clients as a partnership has led to Optima Legal piloting and testing a number of initiatives with lenders. Optima is keen to support lender clients through understanding the customer and to exploit the benefits of new technologies for service delivery through the use of mobile and online.
Identifying the failure of legal firms to register charges before its clients, Optima established a Title Rectification Service software programme that carries out due diligence with the Land Registry. This checks whether the client's lending and their borrowers were registered correctly. On suspicion of fraud, the property department can identify certain triggers or identifiers which mean that the case will be flagged as warranting further investigations
The firm consistently achieves excellent customer service results from its client questionnaires - at least a 98 per cent satisfaction rate with service, punctual in responding to calls and correspondence, friendly service, quick and effective in resolving problems, keeping clients informed and stickling to deadlines. It was one of the first firms to introduce internal staff pre-screening programme and was an early adopter in the legal sector of Treating Customers Fairly.
WINNERS AT A GLANCE
NOMINATED AWARDS
Innovator Award for Small to Medium Sized Lenders
Winner: Newbury Building Society
Highly Commended: Darlington Building Society
Innovator Award for Large Lenders
Winner: dbda / Nationwide Building Society
Highly Commended: Accord Mortgages
Innovator Award for Non-Lenders
Winner: myhomemove
Highly Commended: Countrywide Conveyancing Services
Highly Commended: xit2
Community Services Award for Small to Medium Sized Lenders
Winner: Darlington Building Society
Highly Commended: Hinckley & Rugby Building Society
Highly Commended: Ipswich Building Society
Community Services Award for Large Lenders
Winner: Leeds Building Society
Highly Commended: Northern Rock
Excellence in Treating Customers Fairly - Lenders
Winner: Teachers Building Society
Highly Commended: Hinckley & Rugby Building Society
Highly Commended: Yorkshire Building Society
Excellence in Treating Customers Fairly - Non-Lenders
Winner: LSL Corporate Client Department
Highly Commended: United Legal Services Ltd – eConveyancer
Best Use of Technology – Technology Providers
Winner: Phoebus Software
Highly Commended: The Charlbury Group
Highly Commended: LSL Corporate Client Department
Highly Commended: xit2
Best Use of Technology – Technology Providers and Lenders
Winner: Avelo and Nationwide for Intermediaries
Highly Commended: BancTec and Metro Bank
Highly Commended: DPR and Kensington Mortgages
Best Anti-Fraud Service
Winner: Quest
Highly Commended: xit2
Ecological/Green Award
Winner: Ecology Building Society
Best Law Firm
Winner: Optima Legal
BEST PRODUCT PROVIDERS
Best Overall Lender
Winner: Yorkshire Building Society
2nd: First Direct
3rd: Cumberland Building Society
Best National Building Society
Winner: Yorkshire Building Society
2nd: Leeds Building Society
3rd: Nationwide Building Society
Best Regional Building Society
Winner: Cumberland Building Society
2nd: Monmouthshire Building Society
3rd: Norwich & Peterborough Building Society
Best Local Building Society
Winner: Market Harborough Building Society
2nd: Mansfield Building Society
3rd: Loughborough Building Society
Best National Bank
Winner: Santander
2nd: Halifax
3rd: HSBC
Best Intermediary Lender
Winner: Accord Mortgages
2nd: Godiva Mortgages
3rd: NatWest Intermediary Solutions
Best Online Lender
Winner: Yorkshire Building Society
2nd: Market Harborough Building Society
3rd: ING Direct
Best Buy-to-Let Lender
Winner: NatWest
2nd: Nottingham Building Society
3rd: Post Office
Best Lifetime Mortgage Lender
Winner: More2Life
2nd: LV=
3rd: New Life
Best Overall Insurer
Winner: Paymentshield
2nd: Santander
3rd: LV=
