Although it brings with it another raft of regulatory change,
The Society of Mortgage Professionals believe the implementation of
General Data Protection Regulation (GDPR) in May next year is great
news for consumers and offers significant benefits for
Head of operations, Vishal Pandya, asserts that a 'right of data
portability' clause it contains will make it easier for people to
transfer their data between service providers - provided it has
been generated by themselves - which could result in the mortgage
application process becoming much speedier.
"As customers find it easier to transfer their data between
organisations, mortgage affordability checks could become
streamlined and a whole lot easier," he commented. "Furthermore,
firms enlisted in the FCA's regulatory sandbox are looking at
mortgage affordability, so perhaps GDPR could form a pathway to
move the industry forward.
"GDPR will make it easier for them to transfer data between
service providers on request and seeks to protect against lock-in
effects. Consequently, customers will be able to move around more
freely and their data transferred without hindrance, thereby
expediting the whole process."
He went on: "The right of data portability only applies where
data is processed by automated means and the data subject has
provided consent to the data processing. Any information being
transferred must therefore be in a commonly used format and be
Pandya admitted it may not work in every case though. "There
could be issues with collating and forwarding the data, given that
many different organisations within the mortgage sector use their
own individual systems," he cautioned. "and legacy systems may not
initially be compatible with newer software.
"But in general, GDPR will give people greater access to any
information stored about them, the legal basis behind it and the
period of storage.
"It will also ensure that firms cannot mix data for the
provision of products/services with that used for marketing