Tuesday, 18 April 2017

CML Handbook - Staying on Top of Changes

All mainstream lenders provide their instructions to property lawyers via the CML Handbook or BSA mortgage instructions. Understanding a specific lender’s requirements and keeping up-to-date with changes can be a time-consuming manual process, particularly given that individual requirements can change on a daily basis.

In not addressing or overlooking a lender’s requirements, a solicitor or conveyancer risks being sued by the lender for the full value of the mortgage and their firm could be removed from the lender panel. The previous SRA thematic review into conveyancing revealed that a quarter of firms surveyed had experienced professional negligence claims relating to conveyancing work in the two years.

This free webinar focuses on the more important changes in the last 6 months. It will also highlight trends that are emerging when it comes to lender behaviour in particular in relation to certain types of ‘problematic properties’ for example: short leases, absentee landlords, defective leases etc.

The webinar is scheduled to last half an hour and will be split into four sections.

  • Key statistics and figures in relation to CML Handbook changes (for example most common section changed etc)
  • Significant CML Part 2 Changes in the last six months
  • Trends that are emerging - examples of how lenders react to new and emerging risk by adapting their Part 2 requirements
  • Demonstration of new Technologies are available to assist in CML Handbook compliance

For more information on dates and how to register, please click here.

Tuesday, 4 April 2017

Reports on Title : How do You Find the Time?

Almost all conveyancing lawyers complain of not having enough hours in the day or being under significant time pressure. For many, there exists a feeling of being stretched or overworked.

Few would challenge the sentiment that conveyancing has become more complex in the last twenty years. Simultaneously, the industry has witnessed an increased demand for speed of transaction and better communication. Long gone are the days when there were four weeks in between exchange and completion, which believe it or not, was the norm in the mid 90’s.

With so many parties placing demands during the working day when is the conveyancing lawyer supposed to find the time - often in excess of an hour - to generate the single most important document in the purchase transaction, namely the Report on Title?

For many, the only option is to arrive at the office early or stay late or work over the weekend when the frequency of  phones or emails dies down. For others it’s booking one of the board-rooms to shut themselves off to concentrate on drafting such a crucial document.

Hardly surprising that a conveyancer can often be heard explaining to an agent or client ‘I have everything I need we just need to report to the client’. Whist that is said out loud, the internal voice is probably asking ‘how the hell am I going  to find the time to draft this report?’

Recent seminars and webinars by Lexsure have focused on ways to improve the workflow for generating a report on title not just from a speed perspective - reducing the process to a matter of  minutes - but also highlighting ways of improving risk management.

The April webinars are fully booked with 600 registrants but personal on-line demonstrations of the new e-ROT technology are now being offered. Firms can book a demo here.

Friday, 31 March 2017

Will your Borrower Client's Lease Term Accord with CML Handbook Requirements?

Accord Buy to Let is the latest of a number of lenders who have changed their CML Handbook requirement relating to minimum unexpired lease terms (section 5.14.1).

The new requirement reads :

"85 years from the date of completion of the mortgage".

This replaces the old wording:

"60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term".

Thursday, 23 March 2017

New financial trade association to be named: UK Finance – Representing UK Finance & Banking

The new financial trade association has been named UK Finance - Representing UK Finance & Banking. This was a unanimous decision by the Interim Main Board. The new integrated trade association will bring together member organisations in finance and banking in the UK. 

UK Finance will integrate the remits, skills and capabilities of six trade associations: The Asset Based Finance Association (ABFA), British Bankers’ Association (BBA), Council of Mortgage Lenders (CML), Financial Fraud Action UK (FFA UK), Payments UK and the UK Cards Association (UKCA). 

Last month Bob Wigley was announced as the Chair of UK Finance, commencing his role on the 1st March who will oversee the appointment of the Chief Executive of the new body and the integration of the existing trade associations. UK Finance is set to launch in the summer of 2017.

Tuesday, 21 March 2017

Report on Title - Time Saving Calculator

Do you shut yourself off in a quiet room at the office for hours a week or come into work early to work on this critical and time consuming document?

Is it possible that you are wasting valuable time?  What a sad depressing thought. Surely there has to be a better way to generate a Report on Title.

Lexsure have created a calculator to help you add up all the hours and assess how much time the e-ROT might be able to save you.The table below shows how much time firms are spending based on feedback to date:

Use the calculator to get an approximation of time that you may be able to save,

Lexsure’s e-ROT Brings increased protection, consistency and efficiency to building the most important  - yet tedious and time-consuming - document in a purchase transaction.

The e-ROT webinars are taking place this April. You can book here.

Monday, 13 March 2017

Conveyancers - What would you do with an extra day a month?

Most conveyancing lawyers I consult with complain that they don’t have enough time, but what would you do if you had an “extra day” a month? Would you do all those things you said you'd do; enjoy a day at a spa, actually take a lunch break, arrange time with family or friends or simply have a little quality ‘me’ time relaxing over a good book?

The average lawyer that I come across completes ten purchase cases a month. For some this number can be as high as 25.

Without exception, lawyers inform me that the most time consuming part of the conveyancing process is the Report on Title. The recent Lexsure ‘Time is Money’ survey revealed that lawyers spend an hour or more on drafting a Report on Title, regardless of whether they have a case management system. Even if you’re one of the fortunate lawyers who enjoys producing this document, the time it takes is at best an inconvenience.

It strikes me as odd that despite technological advances in the conveyancing process this most important and time-consuming document has not received proper attention. Taking to heart the old adage “a solicitor’s time is his stock-in-trade” Lexsure has an automated Report on Title (e-ROT) reducing the average time to prepare a Report on Title to 5 minutes. Using an average of 10 cases a month that equates to a saving of over 9 hours a month….the equivalent of a working day.

Whist the primary reason to upgrade your Report on Title should be about reducing risk, a side benefit of the e-ROT is that it should enable you to be more efficient, reduce your stress levels and result in you having more free time. Now all that’s left for you to do is decide how you’re going to use that extra day, whether it be all in one go or by giving yourself an extra hour here or there!

To find out more about the e-ROT please pick from one of the four free webinars in April.

Thursday, 9 March 2017

New Building Society Requirements for New Build

Principality Building Society have changed their CML handbook requirements to section 6.7.1 extending the obligation to the solicitors acting on their behalf.

When it comes to checking on acceptable warranty schemes for new build or newly converted properties, lawyers are now expected to ensure that the level of cover available under the warranty will be sufficient to meet the rebuilding cost of the property. A calculation will be necessary when the proposed security forms part of a continuous structure.

To be notified when lenders are introducing similar requirements or changes click here