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"This is a mortgage market game-changer from Gen H" as lender turns on credit search transparency

ended 05. June 2024

A new tool launched by Gen H that shares any discrepancies identified during the soft credit search with brokers when a Decision in Principle (DIP) is submitted has been described by one broker as a “game-changer”.

A second said: “Gen H's bold and progressive move to share customer credit agency data with brokers represents a significant advancement in the mortgage industry.” A third added: “This is an example of a modern solution to an age-old problem.”

To date, if an applicant fails a credit check with a mainstream lender, their mortgage broker is not told what has been found on the credit file, meaning they're left in the dark and things are difficult to proceed.

To rescue it, the application then requires a lot of toing and froing between business development managers (BDMs), underwriters and borrowers, resulting in stressful and often costly delays.

But Gen H has now given brokers the power to find solutions rapidly when borrowers are declined rather than simply turn to another lender.

Luke Calton, senior product manager at Gen H, said: “From first being conceived to final implementation, this feature took almost two years to release as we explored important data privacy questions. But in researching this with brokers, we saw how frustrating it was to encounter a ‘computer says no’ experience with the credit file. We have access to this information, but we were never able to openly talk about it with the customer’s best interests in mind. I’m pleased that now, we can treat brokers like equals when it comes to the information we find on the credit report. This transparency is in the customer’s best interests, and I’m sure it will lead to a faster and smoother application process for all involved.”

Will Rice, CEO of Gen H, added: “This launch was particularly complex as we were treading new ground in terms of data sharing and customer transparency, but if it helps our broker partners better serve their clients, it’s worth it."

The views of 10 brokers - all extremely positive - are below.

10 responses from the Newspage community

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Harps Garcha
Director at Brooklyns Financial
This is a mortgage market game-changer from Gen H. Increased transparency and better disclosure practices will cut down on delays and confusion in the mortgage process. If other lenders follow suit, it could make things smoother and quicker for the entire mortgage industry. The fuss about GDPR blocking disclosures seems misplaced since GDPR is about protecting personal data, not stopping transparency. Clear disclosures can save time and headaches, making life easier for brokers, lenders and most importantly borrowers.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
This is an example of a modern solution to an age-old problem. Brokers key applications based on the credit commitments disclosed by clients, and even if they ask for a credit report, these do not always show all accounts. Then when the lender receives the application they advise it has been declined due to something undeclared. The Gen H system of stating the commitments they have found on their search and then asking if these will continue or be paid off, hugely simplifies this process and will lead to much less frustration for borrowers and brokers alike. Hopefully more lenders will follow this blueprint. It's a win for the consumer and Gen H have truly shown themselves to be a progressive lender.
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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
Gen H's bold and progressive move to share customer credit agency data with brokers represents a significant advancement in the mortgage industry. This practice, not yet widespread, offers substantial benefits in terms of efficiency and customer experience. By reconciling credit agency data through their system, Gen H streamlines the application process, enabling brokers and underwriters to deliver faster, more cohesive applications and ultimately better outcomes for customers. While Tandem Bank also operates a similar system, Gen H stands out for its exceptional ease of use. This move by Gen H could set a new standard for the industry, encouraging more lenders to adopt this innovative approach. Kudos to Gen H for leading the way.
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Mike Staton
Director at Staton Mortgages
This is a victory for common sense and a win for borrowers. How on earth can lenders justify a fair outcome for borrowers if they can't be bothered to tell them why they have declined their application? In that regard alone, it's welcome news in the mortgage industry, all the more so from a Consumer Duty perspective. I have always struggled to understand why a lender would not disclose the reasons for an adverse credit decline, considering you have provided the lender with all of the required information to process the application and have a signed declaration agreeing to a credit check. My opinion was it was the lenders ringfencing the application, namely that if someone is not getting a mortgage through them then they are not assisting you with the information that would help you move to another lender. In short, a little bit like the spoiled brat that nobody liked on the park that always said: "It's my ball, I'm going home".
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Simon Bridgland
Director at Charwin Private Clients
Common sense underwriting at last. For years, lenders have hidden behind Data Protection rules as an excuse to not say what's showing on file for a client. That then leaves us having to stab a guess as to what is on someone's credit file. Not all clients know or understand what will show up, especially if there has been a family breakdown. Things do have a tendency to show up unexpectedly but this will definitely help to solve that.
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Ken James
Director at Contractor Mortgage Services
Kudos to Gen-H. Finally we have a lender who is willing to pull back the curtain to reveal what was there all along, namely answers. As brokers, we have long been asking for this, but our voices have fallen on deaf ears. Lenders like Gen-H are really starting to shake up traditional lenders practices. In the ever-evolving mortgage landscape where customer expectations and regulatory requirements are constantly evolving, Gen H's commitment to customer-driven solutions showcases their dedication to supporting the broker community, delivering exceptional service to brokers and borrowers alike.
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Rohit Kohli
Director at The Mortgage Stop
We are pleased to see Gen H joining the ranks of Mpowered and Tandem in leveraging data to enhance client outcomes. By positioning themselves as collaborative partners to mortgage brokers, rather than creating barriers when addressing adverse-related declines, these lenders are setting a new standard in the industry. If this trend continues, it is only a matter of time before major lenders will need to reassess their strategies to foster a truly reciprocal relationship with mortgage brokers, rather than what too often feels like a one-sided arrangement.
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Ben Perks
Managing Director at Orchard Financial Advisers
Gen H has removed the red tape and taken a refreshing step forward towards common sense underwriting. So simple, yet so significant. Too often minor credit discrepancies lead to delays, which result in a frustrating back and forth to make sure the figures align. By presenting the information they see straight away, it gives us the ability to sort it immediately and move the application forwards. This should be the norm and other lenders need to jump on this bandwagon. Chapeau Gen H.
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Craig Fish
Director at Lodestone Mortgages
This is a fantastic change and shows what these new challenger banks can really do to bring the mortgage industry upto date in an increasingly digital world. Many lenders will simply decline or refer if there is a slight discrepancy, so this change will dramtically sped up teh process. We now just need the credit reference agencies to catch up, as sometimes their data lags by about a month or so.
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Gary Bush
Financial Adviser at MortgageShop.com
A breath of fresh air from Generation H - sharing data with financial partners is an obvious improvement. Pity some traditional lenders still act like Secret Squirrel with data on applicants.