JEREZ 2006: Lenders criticised for not increasing proc fees despite cutting costs

Lenders have been criticised for not increasing proc fees despite cutting costs through online technology.

Speaking at Todays Mortgage Summit Kevin Patterson, sales director at Park Row says he is amazed that brokers are still fighting the battle for higher proc fees.

He says: Lenders argue that their online savings have been wiped out by regulation so they cannot increase proc fees. Lenders are not prepared to address this issue. The cost savings form online technology must be tremendous.

However Tim Hague, director at BM Solutions argues that because of some brokers, the online savings are not sufficient.

He says: The online savings are not as big as you think, We have brokers that when they submit cases online, they will telephone up to make sure that the case has gone through. This means nobody is saving any money, or time, as we still have to have people in the offices answering those calls.

However, Lockhart Bruce, managing director at Opus argues that lenders should be able to create systems similar to packagers, where they can send a confirmation report back to the client.