PLAY DIP BINGO LEADS TO PANEL REMOVAL

Standard process for Mortgage brokers is to obtain an Agreement in Principle / Decision in Principle for clients as part of the overall mortgage advice process.  

This can assist with potential purchasers when talking to estate agents and wanting to put forward an “offer”.  

Everyone knows however, that the DIP/AIP is not a guarantee of anyone’s ability to get a mortgage of a specific amount, but is merely an indication that “it should be okay”!

This in itself is not an issue and just a “soft foot print” on the clients’ credit score, but there are some other potential implications for the adviser.

Is the information contained within the AIP/ DIP is replicated exactly when converted to a full application?  If so – all well and good, and of course there are valid reasons for “changes” and these can be notified accordingly. 

The problem occurs where the broker, either inadvertently, or on purpose, rounds up the clients income for ease / quickness, then submits the full application with the specific income details etc. if there is a discrepancy, of any amount, depending on the lender, there have been cases where the lender has taken the decision to remove that broker from panel….

The lender is not obliged to give reasons; so you never actually know 100%, but there have been instances where some lenders may have reviewed several files, and then commented that they “have not met the lender’s required standards” and the decision taken to remove a broker. 

When I have discussed this with the broker concerned, the only discrepancy we could fine was around income figures on DIP and full application…..

Conclusion, I think it is a reasonable assumption that playing fast with DIP is not acceptable.