Nationwide Building Society expands partnership with EDM MSS ahead of the PRA’s new SS 13/16 portfolio landlord underwriting standard
26th June 2017
Nationwide Building Society has expanded its partnership with EDM Mortgage Support Solutions (EDM MSS) to develop a new technology solution ahead of the Prudential Regulation Authority’s SS 13/16 landlord underwriting standard coming into force in September. The solution is being implemented by The Mortgage Works (TMW), a subsidiary of Nationwide which offers a range of specialist buy-to-let products through professional mortgage intermediaries.
The online solution from EDM MSS allows brokers to upload portfolio property details directly into the platform. The details will then be validated via the EDM MSS’ PRISM platform and allow for the results to be sent to TMW’s dedicated team of portfolio underwriters for assessment, significantly simplifying the underwriting process.
PRISM – which stands for Portal for Risk Information Sharing in Mortgages – is a state-of-the-art EDM- hosted digital hub which brings manual processes online, enabling lenders to access third party data and make business decisions around the suitability of properties immediately. Nationwide was the first major lender to sign up to PRISM in 2016.
Rob Stevens, Head of Property Risk, Operations and Strategy for Nationwide Building Society, said: “Ahead of the PRA’s changes to portfolio landlord underwriting standards, TMW has confirmed its commitment to supporting portfolio landlords – our partnership with EDM MSS and the extension of the PRISM solution testifies to our commitment to all stakeholders in the sector.
We’ve worked closely with EDM to give brokers a choice around how to submit portfolio property details. They can key the details directly into the platform, or collect the information offline using a dedicated TMW form, which can be uploaded into the platform to populate the information required. The PRISM solution will then validate this information and pass the results to our underwriters for assessment, reducing the time it takes for us to reach a lending decision.”
Joe Pepper, Managing Director – EDM Mortgage Support Services, said: “A significant number of BTL landlords have portfolios with four or more mortgaged properties, a big enough proportion to add significantly to lenders’ workloads. For each affected landlord, lenders must research their properties and fully appreciate values, rental yields and mortgage payments.
“This is where standalone technology applications can offer a clear way forward. The big issue in delivering new technology platforms is integrating them with established systems. We have worked hard with Nationwide and have a proposition to suit the needs of the buy-to-let industry in light of the PRA requirements. EDM’s PRISM can handle the evaluation process, providing the application data has been fed directly in, taking a huge chunk of the manual data processing task away and allowing the underwriter to focus on the lending decision. Crucially this technology can be quickly and easily delivered as a standalone solution to buy-to-let lenders without changing existing mortgage platforms.”
SS 13/16 stipulates the PRA’s minimum expectations that firms should meet in underwriting buy-to-let mortgages and these include a number of requirements around affordability assessments, taking into account a borrower’s costs including tax liabilities, verified personal income (where used by the lender) and possible future interest rate increases.