60 seconds with...Lynne McCaffrey
Share
Head of Conveyancing, Goldsmith Williams
Why have you started to impose insurance cover for gifted deposits?
Insurance cover is an industry standard and something we have always done in accordance with the Council of Mortgage Lenders’ guidelines. With the difficulties that first-time buyers are facing accessing finance, gifted deposits are becoming more common, so insurance cover is increasingly prevalent. Solicitors have a duty of care towards lenders to protect their investment and all good law firms should be insisting on insurance cover.
Is separate representation for brokers and lenders likely to occur soon?
The issue of fraud is not going away and lenders are particularly sensitive to solicitor fraud following the Financial Services Authority’s recent thematic review. Separate representation has huge benefits in that lenders are able to choose their own solicitor, which goes a long way in protecting them. The downside, of course, is the potential for increased cost and delays, but the Conveyancing Association is looking at how its members could offer a separate representative facility to lenders without these unnecessary incursions.
In its thematic fraud review of lenders’ systems, the FSA called for them to focus more on third party panels. Do you agree?
Yes as CML director-general Michael Coogan recently said, the days of the open panel are dead and lenders are looking more carefully at third party panels. This looks set to continue, which has to be a good thing as it’s impossible to manage an open panel.
Do you think the Conveyancers Quality Scheme will force smaller firms out of business?
Not necessarily but it will become difficult to adhere to the scheme in full if you are a small firm with limited resources. CQS requires audited processes and procedures entailing different levels of staffing and managerial responsibility, all of which require additional resource.
If you had one superpower what would it be?
The ability to be in two places at one time.
What is the most expensive item you have ever bought?
My house.
What has been the best advice you have ever received?
Just be yourself.
What book are you currently reading?
James Patterson’s Tick Tock.
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
