Tuesday, 23 October 2018

Does Brexit Spell the Exit for Firms on Lender Panels?

The Bank of England's governor has recently warned the cabinet that a chaotic no-deal Brexit could crash house prices.

His worst-case scenario was that house prices could fall as much as 35% over three years.

If such a prediction comes to pass it will be destructive for conveyancing firms.

Lenders will not swallow their losses happily. For conveyancers, that means a tsunami of file reviews because lawyers are an easy target for a lender looking to offset a loss – or pass it on altogether. Any failure by the lawyer to comply with the letter of their mortgage instructions – typically based on the lenders’ handbook – will be pounced upon.

Many firms will be removed from lender panels or fail to find a PI insurer, which amounts to the same thing. There will be fewer conveyancing law firms. Strong risk assurance embedded in your firm’s everyday practice can put those worries to rest.

Ask yourself whether you have ever considered a pre-lender compliance audit. Many firms make enormous efforts to ensure their client Ts and Cs and website copy are compliant, but don’t take the trouble to check on lender compliance. Yet the consequences for a firm tripping up on lender Handbook requirements can be fatal to a law firm.

It’s not just about peace of mind. A lender compliance audit can bring real value to your firm. A third-party firm acting in the same way a lender would can uncover issues and knowledge gaps that you can address to make your conveyancing processes more rigorous.

In this day and age of increased accountability and regulatory requirements, audits should be welcomed, not feared. If you’d like to find out more about how Lexsure’s lender compliance audit can assist your firm please contact support@lexure.com

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