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Second tier lender Citibank has spoken out against minimum volume requirements and has assured brokers that it will not follow the lead of some of the majors.
“We have no intention of changing our current arrangements,” Citibank Mortgages head of distribution and marketing, Peter Hayward, told Mortgage Business.
According to Mr Hayward more than 80 per cent of Citibank’s mortgage lending is originated by brokers and the bank “did not wish to jeopardise the relationships we have in place”.
Mr Hayward went on to criticise other lenders who had recently implemented minimum volume requirements.
“When a bank implements a minimum volume quota, it effectively turns the broker into an agent for the bank,” Mr Hayward said.
“The relationship between banks and brokers should be harmonious. Brokers are professionals and we should be encouraging that professionalism.”
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