Nationwide would rather reward quality
Gary Salter, head of corporate accounts, said that some lenders had started to go down this route and as long as it was done with transparency it was hard to argue against it.
He said: “At Nationwide we are looking at a number of quality measures one of them is decision in principle to accept rather than DIP to application, so in other words the percentage of DIPs we would be prepared to lend on.”
Salter said that a number of brokers submitted business with the hope that it would pass the credit score and after examining some of these cases Nationwide found that where a broker submits largely marginal business there is a direct correlation between that and arrears performance.
He added: “So why would a lender want to deal with a broker whose business model is to throw enough mud at the wall hoping that some will stick.”
But Salter said that rather than remove a broker from its panel its strategy is to work with them to highlight the type of business Nationwide is looking for.
The announcement follows an earlier statement in September whereby Nationwide group intermediary sales managing director Ian Andrew said proc fees were constantly under review but there were no immediate plans to make any changes.
Ian Andrew, managing director at Nationwide group intermediary sales, said today: “Proc fees are constantly under review, but we currently have no plans to change them.”