GMAC slams lender DIPs

Ramesh Sharma

June 1, 2004

Jeff Knight, head of marketing services at GMAC-RFC, urged lenders to stop using ‘dinosaur’ DIPs and provide binding decisions for intermediaries’ sake.

He added that although some systems, such as Platform’s ‘Clickdecision’, are a step in the right direction, they do not provide true binding decisions. He explained suffering service is an indicator as binding decisions should mean lenders’ service is not adversely affected.

He said: “Some lenders are stuck in reverse and launch products to attract business but can’t cope with demand. This has been a historical problem but technology should negate this. Some lenders have pushed forward but still only offer DIPs.”

“Others claim to offer binding decisions but on the whole they’re actually DIPs, which can be misleading and the reason why their service blows up. Others don’t offer any online system. They don’t need to be named but they can’t cope with demand. The solution for everyone is to provide online binding decisions,” he said.

Paul Hunt, head of marketing at Platform, agreed lenders should consider introducing binding decisions. “Platform does provide binding decisions and our system wouldn’t be such a success with packagers and intermediaries if this wasn’t the case.

“Occasionally with applications information comes to light that affects the original decision and as a responsible lender we take all information into account when assessing an application.

“Since July we have provided over 10,000 click-decisions and less than 1 per cent have subsequently been turned down for these reasons.”

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