LBG edges closer to linking proc fees to quality
Peter Curran, LBG head of intermediary distribution, told delegates at the Mortgage Intelligence Conference last week that the bank was looking into the concept of how you reward and recognise brokers who submit good business.
He said: “It seems eminently sensible to recognise quality – but how you do it is the part we are working on.”
In June Mortgage Introducer revealed that Abbey For Intermediaries would reward “good” quality cases with 39bps, medium quality 37bps and “poor” quality cases 35bps.
Curran said that AFI’s step to base proc fees on quality was interesting, prompting them to look in to how they could make this work for LBG.
The discussion took place during the afternoon question and answer session of the conference and other lenders were invited to give their opinion of the proc fee structure.
Charles Haresnape, managing director of residential mortgages at Aldermore, said he remained dubious about the concept.
He said: “Aldermore currently has no intentions of changing its proc fee structure. I think it is extremely difficult to have relevant measures to monitor quality of packaging that are entirely within the broker’s control.”
But Nigel Stockton, financial services director at Countrywide, said that as long as the structure was fair and transparent and brokers could influence the factors then the idea was reasonable.