From July 2 the lender will now take into account quality of business when determining how much brokers are paid.
Mortgage Strategy understands that as a result, the proc fees payable to some key accounts will increase, while the proc fees payable to others will remain the same or decrease.
Proc fees will be set at account level, with business quality one of the considerations now determining commercial terms.
It is believed that for directly authorised intermediaries who transact through mortgage clubs, the gross proc fee terms will be 33bps for core residential cases.
For ARs of networks who are not part of its key account set, the proc fee terms will also be 33bps for core residential business.
While the proc fee for key accounts will vary between 35bps and 40bps, with the quality of brokers’ business now determining part of that.
It is believed key accounts with good quality business will be paid up to 40bps, with mediocre business 37bps and poor quality business 35bps.
It is understood the lender will judge what proc fee its key accounts receive against a number of key metrics, such as packaging of cases, the conversion rate of applications to offer and the overall quality of cases.
In April, Mortgage Strategy revealed that a major lender was looking to pay proc fees to brokers based on the quality of business they submit.
A spokeswoman for Abbey, says: “We are making some changes to the proc fees we pay on our core residential business. This is in line with recent competitor changes in this area. We are committed to writing mortgage business that is good quality and to offering borrowers the right mortgage for their needs, and these changes support our commitment to working closely with our key account partners to achieve this.”