Conveyancers urged to tackle mortgage fraud
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Conveyancers need to do more to tackle mortgage fraud if they wish to remain on lenders’ panels, claims Eddie Goldsmith, chairman of the Conveyancing Association.
He is urging both solicitor and licensed conveyancing firms to take a more definitive role in dealing with mortgage fraud.
Goldsmith says conveyancers can play a vital role in tackling fraud because it is perpetuated through the legal and related processes that they are involved in.
Following recent moves by a number of major lenders to reduce the number of conveyancing firms on their panels, Goldsmith believes further reductions are likely and firms that cannot demonstrate they have undertaken all relevant procedures to minimise fraud will be most at risk.
He says: “The CA believes that the industry needs to recognise that we don’t have a divine right to be on lenders’ panels and therefore need to accept that lenders must manage their risks to reduce fraud.
“We understand and respect that lenders will only want to work with conveyancers who offer a superior service, can demonstrate high quality standards, competence and probity of staff, financial stability, and good management of staff and administrative processes.
“The issue of mortgage fraud isn’t going to disappear overnight and no one is naive enough to believe it can be fully eradicated.
“However, the CA and its members are committed to working with brokers and lenders to improve the situation.
“If our industry works together to raise standards and improve due diligence, this will go a long way in building the confidence of lenders and consumers in the integrity of services provided by the profession.”
The CA is currently meeting with lenders to discuss what steps can be taken to ensure its members are operating at required quality levels.
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