eTech develops end to end web based Buy To Let Hub for the portfolio landlord market addressing new PRA underwriting standards
With the imminent regulatory changes to the Prudential Regulation Authority relating to the underwriting of buy to let portfolio properties, eTech have developed an end to end web based solution, designed to solve the administration burden on brokers during the underwriting process, whilst providing a robust platform for lenders to make accurate loan application decisions.
The PRA SS 13/16 landlord underwriting standard comes into effect on 30th September and eTech’s Buy To Let Hub software not only addresses these new rules, but brings lenders and brokers closer together by streamlining and simplifying their operations in the buy to let property portfolio market.
eTech specialise in building software solutions for the property services industry. For this particular project eTech have partnered with OneSavings Bank (OSB) alongside several other Lenders. This collaborative approach has enabled eTech to build a robust system that addresses the needs of the market which mitigates risk, streamlines operations and enhances productivity.
Whilst the Hub brings many administrative benefits to the broker including a user-friendly web based system, ease of 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, the lender has the reassurance of compliance and property risk management.
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, CoreLogic and Hometrack, resulting in a PDF summary report. Lenders are then able to assess each application in real-time with the confidence that all criteria have been met and all within the PRA underwriting standards.
Mark Blackwell, Lending and Surveying Services Director at eTech commented: “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.”
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Richard Wilson, 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.”
The Buy To Let Hub is due for release at the end of August. Post release the software will continue to develop with further enhancements and new features.