CML predicts end of lenders’ open conveyancer panels
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Lenders will no longer have open panels for conveyancers, according to Michael Coogan, director-general of the Council of Mortgage Lenders.
Speaking at the Conveyancing Association’s Summer Reception, Coogan said it is understandable lenders are taking control of their panels considering fraud loss is estimated to have reached £1bn.
Coogan says: “There has simply been too much fraud and poor professional performance for lenders to accept the business risk of allowing anyone in the profession to introduce business to them.”
He says he expects lenders to be more vigorous in their responses when problems arise once the Financial Services Authority has published its findings on financial crime in June.
Coogan says most lenders will put in place arrangements to identify problems earlier, rather than assuming issues will not arise.
He adds: “Put simply, they will want more direct control and ‘control’ costs.”
Coogan also noted that many lenders remain unsure about the impact of the Law Society’s Conveyancing Quality Scheme.
Eddie Goldsmith, chairman of the CA, says: “It is absolutely true that we have reached the end of lenders’ open panels and removal from them will soon become a stark reality for thousands of firms unless they take a stronger stance on issues such as mortgage fraud.
“The FSA’s expected publication on financial crime is likely to act as a catalyst for change later this year. Our members recognise that unless they are quick in taking appropriate action and ensuring they have rigorous measures in place, they could be left in a vulnerable position.”
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