Lloyds Banking Group has struck 900 mortgage brokers off its panel over the last three years after uncovering suspected fraudulent practices.
This week’s Money Marketing also reveals that around 300 brokers have been removed from Lloyds’ panel over the last year.
Practices such as over inflating income and fraudulent applications have led to brokers being suspended for interim periods of three, six or 12 months. In some cases Lloyds has stopped working with brokers on a permanent basis.
Money Marketing understands that some cases have come to light during the application process, while others have been flagged as part of Lloyds’ post-sale reviews.
Lloyds sales director of mortgages Mike Jones says the bank does not take the decision to remove brokers from its panel lightly.
He says: “When we understand there are issues with business submitted, there is a robust process in place where we contact intermediaries to discuss this long before we take action to remove them. However, it is also right that where fraud is suspected, we take immediate action.”
Brokers can appeal the decision to remove them from the panel, but Lloyds says in the vast majority of cases the original decision was the right one.
Association of Mortgage Intermediaries director Robert Sinclair says: “We have been encouraging Lloyds and other institutions to operate a more open and transparent appeals process over the reasons for any decision they make with both the individual concerned and their firm. Some progress has been made on this.”