Tuesday, 29 April 2014

Could Conveyancing Firms Survive Stress Tests?

News that Britain's biggest banks and building societies could be forced to demonstrate their ability to withstand a house price slump of roughly 35% got us thinking about the repercussions of that scenario for conveyancing firms. 

Consider the aftermath of that scenario for conveyancing firms:

Quite apart from the strain on the financial stability of a conveyancing firm in a housing slowdown, could firms cope with high levels of repossessions which will inevitably result in lenders looking to pursue lawyers for losses?

Would a firm be confident if 100 of their cases were reviewed for compliance with CML Handbook provisions?

With all they have at stake, perhaps conveyancers should be stress-testing themselves.

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