RBS- First Active Conveyancing Panel Information

The fact of the matter is that estate agents will be feeling the pain if their clients start out on the conveyancing process having appointed a solicitor who is not on the panel with the purchaser’s chosen lender. Many conveyancing firms are only discovering when they begin working on a case that they are no longer able to work with that lender. Given the inevitable resultant delays in the transaction the chances of an abortive deal increases dramatically. in the circumstances there is understandable anguish on the part of the estate agent as a result of the lost time should the client have to change lawyers.

We only know of a couple of banks that operate a distinct approved solicitors panel where the mortgage advance is over a certain threshold. You should nevertheless check directly with RBS- First Active. At one stage HSBC would only allow Sole practitioners to act for them where the mortgage was below £150,000. We are not sure if HSBC still operate such a condition. In your case it is best to check with RBS- First Active

Each lender has different criteria. We do not hold specific requirements relating to the questions raised as part of the application to be on the RBS- First Active conveyancing panel. Typically lenders need to have full knowledge of a firm including (but not limited to):

Whether the firm has ever knowingly accepted instructions on transactions involving Sale and Rent Back, Back to Back, Exchange and Delayed Completion and Lease Option, Below Market Value.

List of all solicitors within firm

Full career history for each licensed conveyancer including registration date with Council of Licensed Conveyancers

List of all those who fund the firm, including non-lawyers if applicable

top-up split and history of any refusals

Whether any lender has ever made a claim against the firm’s PII cover

List of fee-earners who are foreign qualified

Details of any accreditation e.g. Lexcel or

Automated alerting to inform lenders when there is a fundamental change to the firm (e.g. change of name)

Full complaints history for each licensed conveyancer

In operating open conveyancing panels, lenders such as RBS- First Active 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.

RBS- First Active 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.

In the circumstances please clarify on the application what action you have taken to discover the reasons behind cancellation of your RBS- First Active panel membership. 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 would be advised to contact RBS- First Active to obtain standard documents. The The Council of Mortgage Lenders Handbook includes an individual question for lenders to cite who to contact to obtain standard documents. RBS- First Active in their Part 2’s state: You will need to disclose your RBS- First Active solicitors panel reference.