Bradford & Bingley Conveyancing Panel Information

In operating open conveyancing panels, lenders such as Bradford & Bingley face a number of fraud and negligence risks. While there is no authoritative source of data on lender exposure to solicitor–led mortgage fraud, anecdotal evidence from lenders indicates exposure on individual cases are often in the millions of pounds. The National Fraud Authority estimates that £1bn per year is lost in mortgage -related frauds in total, which is seen as a conservative estimate.

These risks are exacerbated by the lack of a comprehensive set of data on all conveyancing firms (which, for the avoidance of doubt, would include solicitors and conveyancers across the UK) which is in a readily accessible format. Currently, lenders vet the suitability of their panel firms against a variety of disparate, incomplete and potentially inaccurate sets of information. One top 5 lender pointed out to us that it is almost impossible to track individual fraudsters who move from firm to firm, especially where they are no longer registered or no longer hold a valid practicing certificate.

Bradford & Bingley and other lenders are in varying stages of reviewing their approach to vetting firms on their conveyancing panels, to ensure their ongoing exposure to unsuitable firms is reduced. There is also regulatory impetus on lenders to ensure that they have satisfactory oversight of their third party panels, including a due-diligence process.

You might expect Bradford & Bingley via their Part Two conditions to address this but the Handbook is silent on deadlines to send deeds. You need to look at the Terms of Bradford & Bingley’s Conveyancing Panel Appointment that you are bound by. For a number of banks these Terms include a provision along the following lines: ‘To keep us informed of the reasons for any delay in your being able to send the title deeds and documents we require to us within 3 months of completion or evidence of proof of registration within that period. (We will send reminders if the deeds have not been received but will not acknowledge receipt of deeds’ It is important to keep Bradford & Bingley informed. Law firms can often compound their problems by not communicating with the lender when there is a delay or problem.

Bradford & Bingley approved solicitors are bound by the UK Finance Lenders’ Handbook instructions relating to Transfer of Equity. These are set out in Section 16.3. First, your firm must approve the form of Transfer of Equity (which should be in the Land Registry's standard form) and, if Bradford & Bingley require, the deed of covenant on their behalf. You will need to check Bradford & Bingley CML Part 2 conditions to see if Bradford & Bingley have standard forms of transfer and deed of covenant. Please note that this requirement can change from one transaction to another so do check! Second,When drafting or approving a transfer, you should bear in mind that: although the transfer should state that it is subject to the mortgage (identified by date and parties), it need give no details of the terms of the mortgage; the transfer need not state the amount of the mortgage debt. If it does, the figure should include both principal and interest at the date of completion, which you must check ; there should be no statement that all interest has been paid to date. Further obligations are set out in the UK Finance Lenders’ Handbook which have to be followed by all firms on the Bradford & Bingley conveyancing panel

With lenders and conveyancing firms working so closely with one another it is surprising that there has not been greater demand for the introduction of a bit of transparency regarding not just the figures for the Bradford & Bingley conveyancing panel but for all bank panels

In this situation please explain on the form what action you have taken to discover the reasons behind cancellation of your Bradford & Bingley panel status. In particular please provide details if you have received communications from the lender. E.G. before revocation of your panel membership did you receive any letters or calls from the lender putting you on notice?

You should contact Bradford & Bingley to obtain standard documents. The CML Handbook contains an express question for banks to set out who to contact to obtain standard documents. Bradford & Bingley in their Part 2’s state: Always remember to quote your Bradford & Bingley conveyancing panel number.