Lenders have kicked at least 676 mortgage broker firms off their panels over the past four years.
According to FCA data obtained by Money Marketing sister publication Mortgage Strategy, lenders removed 297 directly authorised and 379 appointed representative firms from their panels between April 2010 and January 2014.
The figures come from the regulator’s Information from Lenders system, which invites lenders to share information about brokers where they think a broker or a firm may have been involved in financial crime or poor practice.
The scheme is voluntary so the number of brokers removed from panels could be much higher. Some lenders choose to report the individual brokers they have kicked off as well as firms.
Association of Mortgage Intermediaries chief executive Robert Sinclair says: “These are significant numbers which shows that lenders are taking seriously their responsibilities in terms of limiting fraud and poor broker behaviour.
“The bulk of the numbers may have been in 2010 and 2011 as we are not aware that the numbers of panel removals have been significant over the past 12 months.”
Mortgage Strategy has seen letters where major lenders have refused to give the broker removed from a panel a reason for their exclusion or a chance to appeal the decision.
London & Country associate director of communications David Hollingworth says: “Lenders have been hot on monitoring for fraud, and rightly so.
“But what you don’t want is individuals or firms adversely affected when they have made a straightforward error rather than a premeditated attempt at fraud.”