NRAM Ltd Conveyancing Panel Information

The CML Part II requirements of NRAM Ltd are silent on this. Most lenders address the issue of file retention via their Terms and Conditions where they generally provide that for evidential purposes, the firm must keep the file for at least of 6 years from the date of the mortgage. Data imagining is normally suitable compliance with this requirement. Many lenders point out in that it is the practice of some fraudsters to demand the conveyancing file on completion in order to destroy evidence that may later be used against them. It is therefore important to retain these documents to protect NRAM Ltd’s interest. To be absolutely sure of NRAM Ltd requirements in this regard please check the Terms and Conditions of NRAM Ltd’s conveyancing panel appointment.

In operating open conveyancing panels, lenders such as NRAM Ltd 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.

NRAM Ltd 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.

The majority of lenders do not operate a specific buy to let conveyancing panel but we are hearing about a few that do. We do not know what the position is with NRAM Ltd as at todays date. If you're about to receive instructions from a client on a buy to let purchase with a mortgage from NRAM Ltd we suggest that you call NRAM Ltd to check the position.

You will be aware of the trend in recent years for lenders such as NRAM Ltd to take a much more pro-active approach in relation to the management and make up of their conveyancer panels. The knock on effect of this is that it is more likely that there will be a higher number of cases where a conveyancer is not on the NRAM Ltd panel. The situation that you find yourself in is where your client’s purchaser has his/her own lawyer and NRAM Ltd have appointed a separate lawyer to act on their behalf where the new CML Part 3 requirements apply. Section 11.1 of the UK Finance Lenders’ Handbook Part 3 requires NRAM Ltd’s panel solicitor to ‘ ...transfer the mortgage advance directly to the Seller’s conveyancer. The Seller’s conveyancer must be required to hold the mortgage advance on the terms of the required undertaking. The example borrower’s conveyancer’s undertaking letter includes a specific example of the seller’s undertaking’. You should expect to be advised to received the mortgage advance directly from the conveyancing solicitors for NRAM Ltd. You will no doubt be required to undertake directly to NRAM Ltd’s solicitors to discharge any charges secured on the property and to send directly to them the executed transfer and any other documents required to enable us to effect registration. Please remember to carefully consider undertakings in accordance with your firm’s protocol and record them in your undertakings logg. Please remember that as well as this breach of this undertaking having regulatory and compliance implications it’s breach could also result in your firm being removed off the NRAM Ltd conveyancing panel.

The Law Society’s CQS accreditation gives no guarantee to lender panel acceptance. Nevertheless the Council of Mortgage Lenders have indicated that it is likely to become a prerequisite for firms wishing to join their approved list of conveyancing solicitors. A number of mortgage companies now use the Conveyancing Quality Scheme accreditation as the starting point for Panel acceptance as is the case with Santander.

You should get in touch with NRAM Ltd to obtain standard documents. The CML Handbook has an individual inquiry for banks to enumerate who to contact to obtain standard documents. NRAM Ltd in their Part 2’s state: You will need to quote your NRAM Ltd solicitors panel number.