New Street Mortgages Conveyancing Panel Information

The answer to this question really depends on the reason that your firm has been removed off the New Street Mortgages conveyancing panel. The top 3 reasons are as follows:

1. lack of transactions
2. the lawyer is a sole practitioner
3. as part of the HSBC panel reduction.

In these three circumstances it is unlikely that you would expected to take any action. Disclosure and other compliance considerations are more likely to be relevant if the reason for removal is due to breaches of lender requirements or allegations of fraud or negligence. Whether the reasoning should trigger a disclosable 'material' breach will depend on the firm and the circumstances around possible failures to comply with the SRA Authorisation Rules, and the SRA will judge each case on its own merits. Factors such as the detriment or risk of detriment to clients, the scale of the issue and overall impact on the firm will need to be considered in deciding whether a failure is 'material'. As the COLP you will need systems to identify patterns of breaches. Even if you don't consider there to be regulatory implications the firms COFA should give some thought to whether she/he needs to take any action as result of being removed from the New Street Mortgages conveyancing panel.

You need to be careful here as what you are suggesting may not be acceptable to the mortgage company. It is possible that you (as a non-panel firm) or the mortgage applicant are not at liberty instruct a panel firm of your choice. Many lenders make it clear to their panel firms that where a non-panel member firm is instructed by one of their mortgage applicants, the lender will appoint a panel firm to carry out its instructions and to liaise with the borrower's conveyancer. You also need to make the costs implications and potential for delay very clear to your client.

On the basis that your practice in is on the New Street Mortgages conveyancing panel and you are acting for them in relation to a leasehold property, you must report to them if it becomes apparent that the landlord is either absent or insolvent. If New Street Mortgages are to lend, they may require indemnity insurance. In any event,you will need to check New Street Mortgages’s specific requirements. Notwithstanding whether New Street Mortgages will lend in such circumstances you still need to advise the borrower (unless you are acting for New Street Mortgages alone) as to the risks of buying a property with an insolvent or absentee landlord.

In this situation please explain on the form what steps you have taken to discover the reasons behind cancellation of your New Street Mortgages panel status. In particular please provide details if you have received communications from the lender. E.G. before cessation of your panel membership did you receive any letters or calls from the lender informing you as to why they reached this decision?

You should get in touch with New Street Mortgages to obtain standard documents. The The Council of Mortgage Lenders Handbook contains a specific section for lenders to cite who to contact to obtain standard documents. New Street Mortgages in their Part 2’s state: It helps to disclose your New Street Mortgages conveyancing panel reference.