Barclays and Nationwide have revealed they will not follow a high street rival by tying the level of proc fee they pay individual brokerages to the quality of business submitted.
It is understood one of the major high-street banks is looking to determine the level of proc fee by the quality of business it receives.
It is understood the unnamed lender has developed a metric to assess different elements of brokers’ business, such as the quality of the cases they submit, how they interact with clients and their overall conduct.
Responding to a question from Money Marketing at a panel session at the Mortgage Business Expo in Manchester today, all five members of the panel – representatives from Barclays, Nationwide, Platform, GE Money and Virgin Money – said they do not plan to go down this route.
Sarah Green, head of national accounts at Barclays, says: “we will not be making changes to proc fees.”
And James Chidgey, senior manager of corporate accounts at Nationwide, says: “We have got no plans at all to do that.”
Lee Gladwell, director of sales and proposition at Platform, says: “As far as new ideas go I think this is a crap one. Proc fees are a valid part of the industry. It is our job to underwrite these mortgages and I think to tie them to quality would be an administrative nightmare.”
Richard Tugwell, intermediary business manager Virgin Money, says: “Using quality to determine proc fees is a blunt tool, it is more about educating people about why the case is not of sufficient quality.”