Lloyds Banking Group has rejected an appeal from a mortgage brokerage after it was removed from the bank’s lending panel with no explanation.
Infinity Financial Services was removed from the Lloyds panel in July with no prior warning. The main concerns were income inconsistencies, misleading applications and general quality of business.
IFS adviser Muhammad Masood says his firm completed every case submitted since joining the Lloyds panel last October. The firm says it submitted extra evidence and reviewed every case, none of which flagged any risks to the firm.
Masood says: “We have asked Lloyds to work with us to pinpoint what went wrong because we have back-checked every case submitted and they are all above board. Instead, it has dismissed our entire firm, impacting all our livelihoods, and we don’t know why.”
The Association of Mortgage Intermediaries recently published joint guidance with the Intermediary Mortgage Lenders Association on lenders’ approach to panel removals.
Ami chief executive Robert Sinclair says: “It is always unfortunate when a broker faces these circumstances.
“We would expect lenders to treat sympathetically any request to be reinstated to the panel after a reasonable amount of time.”
A Lloyds spokeswoman says: “Removal of a broker from our panel is a decision that is not taken lightly. We conduct an in-depth review of applications submitted with a particular focus placed on business submissions to the bank over the past 12 month period.”