NRAM Ltd Conveyancing Panel Information

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.

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 UK Finance 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.

You have a number of obligations in this regard which you need to follow if you wish to comply with your lender client’s instructions as set out in the UK Finance Lenders’ Handbook. (a) You must take reasonable steps to verify that there are no discrepancies between the description of the property as valued and the title and other documents which a reasonably competent conveyancer should obtain, and, if there are, you must tell NRAM Ltd immediately. (b) You should take reasonable steps to verify that the assumptions stated by the valuer about the title (for example, its tenure, easements, boundaries and restrictions on its use) in the valuation and as stated in NRAM Ltd’s mortgage offer are correct. If they are not, please let NRAM Ltd know as soon as possible as it will be necessary for NRAM Ltd to check with the valuer whether the valuation needs to be revised. NRAM Ltd conveyancing panel solicitors are not expected to assume the role of valuer. NRAM Ltd are simply trying to ensure that the valuer has valued the property based on correct information. Thirdly, NRAM Ltd recommend that you should advise the borrower that there may be defects in the property which are not revealed by the inspection carried out by their valuer and there may be omissions or inaccuracies in the report which do not matter to them as a lender but which would matter to the borrower. NRAM Ltd recommend that, if we send a copy of a valuation report that NRAM Ltd have obtained, you should also advise the borrower that the borrower should not rely on the report in deciding whether to proceed with the purchase and that he obtains his own more detailed report on the condition and value of the property, based on a fuller inspection such as a homebuyers report or structural survey. If you do not receive a copy of the valuation you can always ask for a copy of one from NRAM Ltd or the borrower. You still need to comply with the UK Finance Lenders’ Handbook Requirement relating to valuation reports even if you don't receive one directly. Failure to comply not only runs the risk of facing a claim by the lender but also being removed from 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 panels. A number of mortgage companies now use the Conveyancing Quality Scheme accreditation as the starting point for Panel membership as is the case with Santander.

You need to communicate with NRAM Ltd to obtain standard documents. The CML Handbook includes an individual question for lenders to cite who to contact to obtain standard documents. NRAM Ltd in their Part 2’s state: You will need to quote your NRAM Ltd conveyancing panel number.