Following ongoing conversations with lenders, he claims that if conveyancers don’t take action, lenders will simply continue reducing their panels.
Mr Goldsmith argues that conveyancers can play a vital role in tackling fraud as it is perpetuated through the legal and related processes which conveyancers are involved in. He states that practices that don’t have suitable procedures in place are often at a higher risk of unwittingly causing such threats.
In 2010, in an attempt to reduce fraud, a number of major lenders announced a move to reduce the number of conveyancing firms on their panels. He believes it is likely that further culls will take place and the firms at risk will be those who cannot demonstrate that they have undertaken all relevant procedures to minimise mortgage fraud.
Eddie Goldsmith said:
“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 understand what steps can be taken to ensure its members are operating at required quality levels. The CA is holding a Summer Reception on 11th May with Michael Coogan, Director General of CML, as its keynote speaker, to discuss the challenges facing the industry and how lenders and conveyancers can better work together to tackle problems such as fraud.
