Mortgage News
B&B sets aside £384m for potential fraud losses
Bradford & Bingley (B&B) will set aside £388.4m in 2010/2011 for potential losses on its mortgage book relating to fraud and professional negligence.
The lender has made a £884.1m provision for overall residentail loan losses, an 89% increase from the £467.7m it set aside for 2008.
In B&B’s annual results for 2009, the nationalised bank, which is currently running down its mortgage loan book and has already sold its savings business to Santander, announced a pre-tax loss of £196m.
While this was a big drop from the £134.3m gain in 2008, the lender said the 2008 figure had been positively impacted by a £216.3m one-off gain on the sale of the retail deposit business to Abbey.
The results alos showed that in 2009, the total number of cases which were three months or more in arrears stood at 5.54% of mortgage accounts, compared to 4.60% as at the end of 2008 and 5.88% as at the end of June 2009.
Richard Banks, managing director of B&B, said: “We have made substantial progress against our business objectives in 2009 and met all of the financial goals in our agreed business plan.
Your First Home: confidence to build
Sponsored by Halifax Intermediaries
“We have completed our restructure to create an organisation that is fit for purpose to deliver a high quality service to our customers whilst reducing costs, minimising losses and delivering value to the taxpayer.”