The Lender Conveyancer Exchange tool will vet the conveyancers used by a lender, carrying out data checks as well as physical visits to their premises to ensure PI insurance and passports are in order.
Once initial vetting is completed, continuous data checks are carried out to help lenders monitor the quality of their solicitor panel.
Xit2 has trialled the service in a pilot scheme, and used information gathered during this exercise to create a database of conveyancer firms and individuals that have passed its checks.
The firm says it is adding new solicitors to the database on a daily basis and is already in discussions with a number of lenders interested in using the service.
Mark Blackwell, managing director at xit2, says: “Lenders have been crying out for help stamping out conveyancer fraud. Most have a vast panel of solicitors, but no ongoing controls to guard against fraud.
“Our new service solves that problem by providing lenders with accurate and current information on their conveyancer partners and the people that work within those firms.
“The success of our pilot shows it is a powerful risk management tool that will give lenders a great deal more confidence in their conveyancer panels.”
He adds that the service also helps lenders ensure their panels adhere to the standards of the Law Society’s Conveyancing Quality Scheme.
Blackwell says: “The CQS provides a laudable quality standard to conveyancer practice, but guidance on policies and procedures is only useful if people comply with it.
“The CQS on its own is not enough, which is why lenders want to bring the selection of conveyancer firms under their direct control in a market fraught with risk.”