Proc fees to be linked to quality confirms Abbey
Abbey for Intermediaries has confirmed it will be making several changes to procuration fees on its core residential range which include taking into account the quality of business.
The lender will also determine proc fees against a series of key metrics of which case quality is one as well as the packaging of cases and the conversion rate of applications to offer.
It is predicted key accounts with good quality business will be paid up to 40bps while mediocre and poor quality cases will receive up to 37 and 35bps respectively.
For directly authorised intermediaries who transact through mortgage clubs and ARs of networks and regulated accounts who are not part of the key account set, the gross proc fee terms will be 33bps alike for core residential cases.
A spokeswoman for the lender said:
“We are making some changes to the proc fees we pay on our core residential business. This is in line with recent competitor changes in this area. We are committed to writing mortgage business that is good quality and to offering borrowers the right mortgage for their needs, and those changes support our commitment to working closely with our key account partners to achieve this.”
The announcement comes a month after five lenders confirmed they were not planning on tying proc fees to quality of business submitted. Representatives from Barclays, Nationwide, Platform, GE Money Home Lenders and Virgin Money all agreed they had no immediate plans to change the way in which proc fees are paid at the Mortgage Business Expo in Manchester on 23rd May.
The changes are set to come in on Monday 2 July.
Content correct at time of publication