Abbey for Intermediaries will now require brokers to keep proof of income for all fast-track applications for two years, or they could face being banned from using the facility.
AfI currently carries out random monthly sampling checks on brokers that have submitted fast-track transactions.
If a broker fails to prove the client’s income there has up until now been no consequences.
But from March 1, if a broker fails to supply evidence of their client’s income, fast-track will be removed for the individual broker and they will not be paid a proc fee.
Where a broker has been removed for three months they can then reapply for fast-track by signing a document outlining that they understand and agree to the terms of the fast-track requirements.
“We are in the process of campaigning to ensure that fast-track is seen as a valuable service which the intermediary industry as a whole can benefit from.”
A spokesman from AfI
If there was to be a second failure, the broker would be banned from using AfI’s fast-track proposition again.
AfI says that from its past experience brokers have not always kept the client’s proof of income.
A spokesman for AfI, says: “We are in the process of campaigning to ensure that fast-track is seen as a valuable service which the intermediary industry as a whole can benefit from.
“We’ve proven that, when properly managed, fast-track is not a driver of arrears or repossessions and we are pleased with how fast- track has performed within our business.
“Our recent communications on fast-track are to ensure that as a community we are all working towards the same goal. If you are using the fast-track system as it was designed, i.e., ensuring that you collect and retain satisfactory evidence of income from your customer at point of sale, these changes will not affect you.
“Only people not adhering to our requirements for fast-track applications will be affected by changes we are making”.