Abbey for Intermediaries has banned appointed representatives of Personal Touch Financial Services from using its fast-track service due to concerns over the quality of business submissions.
A note from the network to its members today explains that Santander’s intermediary lending arm recently carried out a quality audit on all mortgages submitted by PTFS members and had particular concerns that some members were not submitting income verification supporting documents.
From today, PTFS members must submit fully packaged cases, including all income verification details.
Abbey allows brokers to submit fast-track cases but insists that they obtain details of the borrower’s income. If the broker is called upon to produce evidence of income and fails then it would result in that person or firm losing to right to submit fast-track cases.
An Abbey spokeswoman says: “We can confirm we have removed the fast-track facility from the PTFS network. This decision was taken following the outcome of our latest regular monthly fast-track case sample. From the cases we sampled, it was clear across the PTFS network cases did not fully meet the income evidence standards we require, as stated on our income evidence guide.”
In July, Abbey revamped the way it pays procuration fees to brokers based on the quality of business submitted. It means ARs of networks will get between 0.35 per cent and 0.40 per cent, depending on the quality of the cases they submit. The lender measures quality against metrics such as the packaging of cases, the conversion rate of applications to offer and the overall quality of cases.
PTFS’ note to its members adds: “We would encourage all our members who write mortgage business to ensure a high quality submission as this has the potential to impact every single mortgage writer in the network. Abbey could chose to change our proc fee unless we hit their quality standards.”
Emba group sales and marketing director Mike Fitzgerald says: “Once again we have been let down by a few brokers. It is unfair that we have to go to the lowest common denominator and lose out because of a few brokers who could not be bothered to get all of the documents together. We have had years of warnings about this.”
In May, Mortgage Strategy reported over 1,000 mortgage brokers had opted out of using Abbey’s fast-track facility that month. Legal & General Network, Mortgage Intelligence and Mortgage Next and Countrywide no longer offer the facility to their advisers.