Fleet Mortgages Conveyancing Panel Information

In operating open conveyancing panels, lenders such as Fleet Mortgages 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.

Fleet Mortgages 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.

There are many reports available, five of which are as follows:

• Evidence of undertaking logs
• Average time frame to send deeds to the lender (calculated from completion date or title registration)
• Analysis as to the nature of clients (e.g.existing/new/seen in person)
• Buy to Let transactions
• Average time frame to register charges at the Land Registry

The key here is the caveat ‘more onerous’. You have to try and take an objective view as to whether the Terms relating to the Fleet Mortgages conveyancing appointment (or other terms for other lenders) are ‘more onerous’ than the UK Finance Lenders’ Handbook Conditions. Depending on the Terms you may need to provide details on your renewal form. If you are in any doubt please call your broker to discuss before completing the answer.

When a solicitor is acting for both Fleet Mortgages and borrower there is potential for conflicts to arise. You owe duties to both clients. All information received by you from your client is confidential and cannot be disclosed without the client’s consent. In the situation you find yourself in if the purchaser will not consent to the information being passed on to the lender the solicitor must cease to act for the Fleet Mortgages and it may well be prudent you to cease to act for the purchaser as well. You can not tell the Fleet Mortgages the reason for termination of the retainer over and above the fact that a conflict has arisen. The fact that you can no longer act should alert even the most somnambulistic of lenders that something is wrong with the borrower and/or purchase. The fact that you have disinstructed yourself should not affect your Fleet Mortgages conveyancing panel status.

In the circumstances please clarify on the form what steps you have taken to discover the reasons behind cancellation of your Fleet Mortgages panel membership. In particular please provide details if you have received communications from the lender. E.G. before termination of your panel membership did you receive any letters or calls from the lender advising you as to their reasons?

You need to communicate with Fleet Mortgages to obtain standard documents. The The Council of Mortgage Lenders Handbook has an individual inquiry for banks to establish who to contact to obtain standard documents. Fleet Mortgages in their Part 2’s state: Don’t forget to disclose your Fleet Mortgages solicitors panel number.