In this guide:
ESIS Illustration
For first charge and second charge mortgages, an ESIS is produced. The ESIS for second charge mortgages became regulated under MCD. Note that illustrations can only be produced from matched products. The software also allows the production of non-regulated illustrations for the buy-to-let products. To produce either illustration, select the Illustration icon from the bottom right-hand side of the scheme results window as shown.
Six tabs are displayed, some of which are already pre-populated with client data.
The Illustration function produces a number of tabs to enable the production of either an ESIS or non-regulated document. If the broker does not wish to complete all of the tabs, they can be ignored where necessary. However, on first use, it is mandatory to ensure that the Complaints tab is completed with the required text as this is displayed within the ESIS illustration.
The Details tab will automatically pre-populate with the client and broker details where this information may have already been collected.
There is also the ability to include a company/broker email address and website within the illustration.
Within the Fees tab, the software will automatically include the relevant fees associated with the product selected.
The broker has the ability to include a broker fee where applicable. If the fee charged is consistent across all clients, this information can be set up and saved permanently so that it is automatically included in the production of the illustration.
There is also the ability to add in additional fees for brokers who wish to split the type of fee they request from their clients. Within the fees tile of the illustration production, you will notice that the Fees tab now contains three additional fee boxes at the bottom of the screen. The fee name can be amended to something meaningful – this will be displayed on the illustration. An amount and explanation also needs to be included. Once the fees have been included, they are then displayed on the illustration.
The Proc Fees tab allows a proc fee to be calculated automatically, pre-populated or typed in manually. The proc fee can also be split out into relevant amounts if a third party is also to be paid.
On the Insurances tab, some lenders may charge a client for not accepting their own insurance products. In these circumstances, the software will automatically include, and display in the illustration, the amount that will be charged to the client.
Following on from the implementation of MCD, it is important that Complaints text is included within the ESIS illustration. There is a Complaints tab which requires completion by the broker. Once the text has been completed, it will be retained permanently each time an illustration is produced.
The final tile is Conveyancing. This allows the broker to include a conveyancing amount which can then be included and displayed within the illustration. If no figure is required, then this tab can be left blank.
When displaying the illustration documentation, the broker will notice a number of documents.
As well as the illustration, other supporting documentation includes:
A Schedule which details the monthly payments applicable for the product shown and includes the initial and subsequent payments.
A Product Selection Report which records the client data input during the sourcing process and any filters applied during the search, together with a snapshot of the top 25 schemes within the scheme list and confirmation of the position of the chosen product. In addition to this, it also includes the criteria for the deleted products, for example, monthly payments in excess of X or total fees above X. It is intended that this letter is kept on the client file and can be reviewed by the compliance officer. It is not perceived that the production of this letter constitutes part of the documentation provided to the client.
An Affordability document recording the client’s affordable monthly payment (if input during sourcing) together with a table of payments confirming the affordability of the product for the client during the initial and reversionary rate timescales. If an Amber product was chosen for the client, then the reason entered before producing an illustration is clearly shown on the Affordability Report.
Print and Email facility
There are security issues surrounding the ability to email directly from a browser based system. Therefore, the Adobe tool bar, in the top right hand side of the document, can be used to send the documents to print or save them onto the desktop.
If Sourcing Brain is integrated with a CRM, then the client documentation will automatically be pulled back into the CRM and saved against the client file for compliance and future review.