To improve our compliance process and to allow cases to progress quicker, we have decided that for advisers working towards CAS status, we no longer require cases to be submitted to Compliance for Pre-DIP checks.
Compliance will instead check cases at the pre-application stage for those who have not yet received Competent Adviser Status (CAS). After achieving CAS, the team will continue to complete quarterly case checks for all advisers on mortgages that have been completed.
This,however, does not change our Network requirement to have cases correctly packaged before you submit a Decision in Principle (DIP). Compliance will conduct spot checks on cases at the DIP stage to ensure minimum document requirements are still being adhered to. This is important to ensure that your DIP to APP success ratio is within expected lender standards.
How will the process work?
To ensure we are still maintaining an appropriate level of control, there will still be a requirement for some advisers to have DIPs processed by the Case Management Department as below:
- ACADEMY For Academy advisers, all cases must be submitted to the case management team for processing until CAS status has been achieved. A minimum of 6 months and a minimum number of cases apply before Academy advisers can complete DYA training to submit their own cases.
- EXPERIENCED For experienced advisers (those with 12 months or more industry experience and previous CAS status), the adviser must submit their first case to Case Management to process. To be able to submit your own DIPs going forward, thiscase must pass the Case Management case review, and the adviser must completethe DYA training. The team will then confirm that you can submit your own DIPs.
You can notify compliance to complete the pre-application review at any time after the DIP is completed.
If there are any DIPs currently waiting for a Compliance review, we will contact all advisers to confirm that the case can be submitted to the lender. These cases must, however, still be sent to compliance for a pre-application check before the full application is submitted to the lender.
Timescales
These changes will take place with immediate effect. If you have pipeline cases, you will receive a confirmation email from Compliance.
We are listening
We are also introducing an updated grading system, which will mean some cases we currently class as Amber may still be able to achieve a green pass, with minor errors. There will be 6 levels of grading as follows:
6-Green Advice is suitable, and the file is complete with no missing documents or information.
5-Green Advice is suitable, but there are minor fact-find omissions or document omissions (not minimum standard documents) but the omissions are not affecting the advice.
4-Green / Amber Advice is suitable, but some documents evidencing advice are missing, or the suitability letter is presented with minor omissions. Rated as amber-4, but upgraded to green-5 if corrected within 48 hours.
3-Amber Advice is suitable, but minimum one or more company standard minimum documents are missing, or the suitability letter is presented to the customer with material omissions on the recommendation, requiring re-issue.
2-Red Unsuitable advice, eg. mortgage unaffordable, product does not suit customer needs, justification for the advice not clear. (If acceptable justification and correction are provided within 48 hours, upgraded to Amber-3)
1-Red Suspected fraudulent case, e.g.Back door residential, staged income, fraudulent documentation etc.
Your total points over a quarter will be averaged and used to identify overall training and support needs.
I hope these initiatives show that we are listening to feedback to help all our members to get compliance right for the customer without unnecessary burden.
If you have any questions about this new process, please contact me or the Compliance team directly: compliance@connectmortgages.co.uk
Kind Regards
Alan Baldwin
Director of Compliance
For any questions or queries, contact the Compliance Team
Call : 01708 676110