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Proc fee fears over Abbey fast track

Some brokers are opting out of using Abbey for Intermediaries’ fast-track facility due to concerns over its strict rules and the consequences if the lender moves to determine proc fees by business quality.

Abbey for Intermediaries is one of the few lenders to offer a fast-track service and brokers have often complained about falling foul of its rigid rules.

Intermediaries have to verify the customer’s income at the point of sale in fast-track cases. Brokers who cannot produce evidence when called upon lose the commission for the case and are barred permanently from using the facility.

Commentators have suggested that lenders may increasingly look to determine proc fees by the quality of business submitted.

Abbey has stressed it will not use a broker’s fast-track status to determine proc fee levels but some brokers are fearful that submitting inaccurate information, no matter how minor the error, could lead to a lowering of proc fees.

An Abbey spokeswoman says: “We are committed to lending responsibly and we have always required intermediaries to verify the borrower’s income at the point of sale when making fast-track applications.”

Chadney Bulgin mortgage partner Jonathan Clark says: “We understand that Abbey wants to ensure the quality of their fast-track business but we do not want to continue with the fast-track facility because even the smallest underestimation of a borrower’s income will result in the facility being removed and we would not want to run the risk of that resulting in a smaller proc fee in the future.”

Emba group sales and marketing director Mike Fitzgerald says: “It is so important to ensure all the information is correct because the rules are strict and the consequences are very serious.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Maybe we need treat Intermediaries fairly rules!

  2. Stuart Duncan 8th May 2012 at 9:28 am

    It is all very well to say that Abbey have always required brokers to verify incomes (although that in itself is untrue) but Abbey have extended this to expecting penny-perfect disclosure of outgoings and failing to pay due fees in order to impress the FSA.. Fast-tracking income is one thing, but this is simply nailing brokers onto a cross if they can find any errors at all. Abbey might call it responsible lending; I characterise it as something that a mugger would get get arrested for.

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