Lenders’ panel reductions biggest concern for conveyancers
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Lenders’ policy of reducing their solicitor panels in order to manage the risk of mortgage fraud is the biggest concern for the majority of conveyancers, according to a survey by the Conveyancing Association.
However, the CA points out that its members also see this is as an opportunity to root out incompetent or fraudulent firms, and recognise it is up to the industry to meet lenders’ requirements.
In addition, some 22% of CA members cited the impact of changes to PI insurance as their biggest worry, saying this may lead to lenders demanding greater transparency on firms’ insurance arrangements.
Member firms say the impact of the significant reduction of transactional volumes and competitive fees will result in far fewer firms specialising in conveyancing in the future.
The survey also shows that all CA members who are eligible for the Law Society’s Conveyancing Quality Scheme have either applied for it or are in the process of applying.
Eddie Goldsmith, chairman of the CA, says there are a number of changes taking place in the industry that will force conveyancers to make alterations to their businesses.
He says: “The danger is that if conveyancers don’t re-assess their business models, don’t improve their standards or qualities and don’t demonstrate effective fraud prevention methods, they will simply lose business.
“Our increasing membership demonstrates that whilst the industry is rightly concerned about the challenges, conveyancers are taking action to adequately prepare themselves.
“This is exactly why the CA is setting up meetings with lenders and third party stakeholders in the coming months to agree processes and protocols that will distinguish our members from other non-CA firms and demonstrate how our members are the natural preferred legal partners.”
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