Problems are arising when lender sites require the broker to key in the proc fee. Brokers have reported errors occurring because of this and say that systems should be inputting data automatically.
Simon Chalk, mortgage planner at Mortgage Portfolio Services, said: “Some sites will ask you to enter the proc fee yourself.
“On a recent case I mistakenly put in the wrong proc fee. There is no danger that I would be paid the wrong proc fee but the real issue is that the client will see this KFI with the wrong information in it.
“When we generate KFIs on the lender sites, the proc fee should be put in automatically by the lender. If this can be done by some lenders, why not all?
“We are aware that there are different routes you may take with a lender, for example through a mortgage club or network and so the proc fees will vary, but the systems should then have tick boxes where, after the broker has selected what club it is using, the fee will come up automatically.”
One lender that requires the broker to put in the proc fee when using its KFI is Skipton Building Society.
Jennifer Holloway, head of media relations at Skipton, said: “We have so many different proc fee arrangements and there is also the matter of confidentiality.
“If we started having tick boxes on the KFIs so brokers can pick what route they’re using, this confidentiality could be compromised.
“But we are constantly reviewing our KFIs and are currently talking to other providers who use drop-down menus to determine if this is a feasible thing for us to use.”
