Industry experts have renewed calls for lenders to pay higher procuration fees due to the additional work involved in processing cases post-MMR.
Taking part in a panel session at the Financial Services Expo in London today, experts suggested lenders should recognise the work brokers do by paying more commission.
Mortgages for Business managing director David Whittaker says: “In the post-MMR environment brokers are taking on a bigger workload and lenders are now more dependent on the work of brokers so they need to invest more in that channel. Lenders must recognise the broker role and increase their proc fees.”
SimplyBiz Mortgages chief executive Martin Reynolds says: “we saw proc fees move down last year but I would certainly agree that in the mainstream residential space, lenders need to look to raise proc fees and not just get to where they were but perhaps go higher.”
Speaking at the Association of Short Term Lenders’ annual conference last month, Association of Mortgage Intermediaries chief executive Robert Sinclair said he expected there to be a proc fee war before the end of the year as lenders struggle to hit their year-end targets.