Abbey to offer rewards for good packaging
Share
Abbey for Intermediaries is to introduce an incentive system for brokers which will see brokers rewarded with faster processing and access to exclusive products if cases are packaged correctly.
Under the ’Reward Efficient Brokers’ initiative brokers will be measured by the lender against certain criteria and standards, such as the quality of the applications and conversion rates from application to completion.
More efficient brokers will then be rewarded with faster processing terms, including the ability to fast-track cases.
They will also be given more exclusive products, such as higher LTV deals, and be granted more access to underwriters.
Equally, brokers who fall short of Abbey’s standards will come under more scrutiny from the lender.
Abbey plans to hold initial discussions with its key accounts on the scheme within the next three months, and will look to set up a formal system later this year.
Abbey says its proposals to “treat the best brokers better” is one of its key initiatives for this year.
The lender first made key distributors aware of its plans at the Abbey key accounts conference held in Santander city last month.
Abbey’s analysis shows that when comparing the top quartile of business writers against the bottom quartile, the top quartile converts 5 x more applications to completion and submits loans that are 2 x better quality than the bottom quartile of brokers.
The lender says it has taken the idea for the reward scheme from a company called QinetiQ, a former government defence research firm that continues to work with the Ministry of Defence.
Iain Laing, chief credit officer at parent company Santander UK, says: “It is traditional for firms to distinguish between different kinds of accounts.
“What we are trying to do is raise the standards across the board, be transparent, and create benefits for those brokers who are packaging cases well.”
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
View results 10 per page | 20 per page
Readers' comments (20)
Anonymous | 7 Apr 2010 6:52 pm
I wondered why we have been downgraded to a 'Telephone Business Development Manager' take it our business wasn’t good enough? Service levels can’t get any worse. I just wish they concentrated more on mortgage processing as appose to General Insurance Sales!!!!
Unsuitable or offensive? Report this comment
Neil Burton | 8 Apr 2010 8:53 am
Excellent News - I have been pushing ALL lenders to do this for 17 Years!! Finally 1 lender has realised the positives to its own business format....
Unsuitable or offensive? Report this comment
Anonymous | 8 Apr 2010 9:09 am
so does this mean that that only 1/4 will be offered a good service & 3/4 will be offered a lesser service. this doesn't sound very TCF to me.
Unsuitable or offensive? Report this comment
Anonymous | 8 Apr 2010 9:20 am
When will Abbey learn? It's THEIR processes that delay cases, in particular the rule they have to discard any packaging that is sent in that is not required on the first request. In the past I have sent over 10 separate faxes to Abbey for cases, most times including the same packaging that I have sent before. Where the information is not required on the first request, Abbey's process is to delete the information and then request it again later when they need it!! This is a flawed process which prolongs processing and causes delays. Abbey sort your OWN ship out then we may REWARD you with further cases.
Unsuitable or offensive? Report this comment
Anonymous | 8 Apr 2010 9:21 am
it would be really useful if Abbey staff knew the criteria,received an email requesting 1 months payslip and at the same time a telephone call rquesting 3 months payslips
Unsuitable or offensive? Report this comment
Anonymous | 8 Apr 2010 9:26 am
Under my 'reward the efficient lender' initiative I am sending cases to lenders who treat me fairly.
I am disinclined to send cases to lenders who agree cases 3 times, but then, because of a change of property, can't agree it any more.
Or a lender who says "we need evidence that her sister and parents are dead" before they'll accept that the deposit is from an inheritance.
Or a lender who insists on proof that the deposit was saved up over a period of years - so 3 years bank statements would do it - for money laundering - yeah right.
Or despite proof of a credit card being repaid won't accept it because their credit report doesn't show it, then admits their credit report is out of date and asks me to completely resubmit the case in order to get a new report. Then the case goes to a new underwriter and the malrky starts at the beginning again.
Or won't agree a mortgage because the deposit is in a savings bond that runs for a set term. They know the term is 6 months and they know it was set up last september - the 6 month term ran out 2 weeks later than that conversation and it took an argument to get them to see common sense.
"It is traditional for brokers to distinguish between different types of lender". It is natural that lenders that fall short of acceptable standards will come under more scrutiny from brokers.
However, until 2 years ago, when all normal measures ceased - I was giving them 8 - 10 high quality cases a month with a very high conversion rate and ancillary sales.
I guess I can't avoid using them if they have the best product for the client and for that reson this post is anonymous, but the mutual appreciation that we had built up over 15 years has gone - the local service centre has gone too, so personal relationships have ceased and I am just a meaningless number to them now.
Unsuitable or offensive? Report this comment
Chris | 8 Apr 2010 9:29 am
The day Santander stop their policy leading in to rate expiries of aggressively attempting to steel my clients by calling them and offering them the world to stay with them will be the day I reconsider using them. Incentives like this are of no interest to me - intermediaries have played a massive part in giving them their market share and the way they continue to treat us is disgusting.
Unsuitable or offensive? Report this comment
Nicol Cunningham | 8 Apr 2010 9:35 am
That's the funniest thing I have heard. Santander need to get their house in order first. They have undoubtedly the worst underwriting in the UK at present.
Unsuitable or offensive? Report this comment
Peter Yates | 8 Apr 2010 10:03 am
After sending them everything they've asked for and having double-checked with them first, they invariably ask for something else, then something else... ad nauseam. It takes them 48 hours to look at what you've faxed and when chased 48 hours later, they say they never got it, so another (identical) fax which they magically get this time (now at least 96 hours after the first fax). This happens more than once on each case. Bad packaging? I assure you it isn't, but I bet they'd say it is. If I were to rate Abbey for processing, it would be bottom quartile, every time and I recommend their products with a service caveat. Look at your own processes, Abbey.
Unsuitable or offensive? Report this comment
Anonymous | 8 Apr 2010 10:10 am
I used to really like dealing with Abbey as they where approachable , easy to use and to contact.This meant issues could be resolved quickly and offers were issued.
Over the last few months
a)There requests for information has become hit and miss. You are told to send one piece of information in yet this changes depending on who you speak to in the office
b) I used to be able to respond by email - whats wrong with scanning an item and sending it to them instantly- Now it has to be by fax or post (these items seem to be going missing more often than they are recieved).
Is this treating brokers fairly
This week I tried to phone my local region centre to check on a case to find out the numbers and address I had for abbey where no longer listed. I found the new telephone number from there website and to be told the case is now being processed in Glasgow.
I had to ask for the new address and contact details - as they had not told me
So much for better local service
I am hoping that Abbey do improve their service and processing, but going by above information not sure if i want to deal with them as clients come to a broker for a quick reponse - which currently is not happening at Abbey
Unsuitable or offensive? Report this comment