The Mortgage Works Conveyancing Panel Information

The Law Society of Scotland has suggested that solicitors should check their lender panel status prior to accepting client instructions to act. The advice is lender-agnostic as it does not relate specifically to solicitors on the The Mortgage Works conveyancing panel. The recommendation arises from the practice of a number of mortgage lenders who remove solicitors from their panels without prior notice as part of their panel management system, which can lead to some solicitors discovering this only once instructed. This is sensible advice as a client finding out midway through a transaction that their lawyer is not on the approved lender panel is very frustrating and can lead to complaints. Many online consumer forums contain posts where someone is complaining about finding that their lawyer is not on a lender conveyancing panel. Such forums include moneysavingexpert.com

The CML Part II requirements of The Mortgage Works are silent on this. Most lenders deal with 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 The Mortgage Works’s interest. To be absolutely sure of The Mortgage Works requirements in this regard please check the Terms and Conditions of The Mortgage Works’s conveyancing panel acceptance.

The answer to this question really depends on the reason that your firm has been removed off the The Mortgage Works 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 The Mortgage Works conveyancing panel.

On the basis that your firm in is on the The Mortgage Works conveyancing panel and you are representing 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 The Mortgage Works are to lend, they may require indemnity insurance. In any event,you will need to check The Mortgage Works’s specific requirements. Notwithstanding whether The Mortgage Works will lend in such circumstances you still need to advise the borrower (unless you are acting for The Mortgage Works alone) as to the risks of buying a property with an insolvent or absentee freeholder.

CQS membership gives no guarantee to lender panel acceptance. Nevertheless the CML have indicated that it is likely to become a prerequisite for firms wishing to join their approved list of firms. Some mortgage companies now use CQS as the starting point for Panel acceptance as is the case with Santander.

You would be advised to communicate with The Mortgage Works to obtain standard documents. The CML Handbook contains an explicit inquiry for banks to enumerate who to contact to obtain standard documents. The Mortgage Works in their Part 2’s state: Please remember to disclose your The Mortgage Works solicitors panel reference.