Changes are afoot in the Conveyancing Quality Scheme’s (CQS) Core Practice Management Standards.
From 1 May 2022, accredited conveyancers will be required to comply with changes relating to Part 2 of the UK Finance Mortgage Lenders Handbook for conveyancers acting on behalf of lenders in residential conveyancing transactions. Part 2 of the handbook sets out the specific instructions for each lender – of which more than 120 in England and Wales alone.
The updated Core Practice Management Standards (CPMS) state:
“Practices must have a policy for dealing with Lenders which must:
6.4: b. Contain a procedure to ensure that Part 2 of the UK Finance Handbook is checked by a fee earner to ascertain the lender’s standard requirements, as well as those specific to a transaction, and for verifying that all of those requirements have been satisfied, prior to exchange and recording on the file that the check has been carried out.”
With lenders able to update their Part 2 requirements at any time, the challenge for conveyancers will be keeping track of lenders’ changes (which, overall, can exceed 100 in a single month) when ensuring and demonstrating compliance with the updated CPMS. Currently, the UK Finance website flags the date of lenders’ last updates, but not the specific questions or changes. If conveyancers fail to meet the lenders’ very latest requirements under the CPMS, they risk insurance claims, panel and accreditation status and reputational risk.
Making compliance easier – and quicker
Conveyancers can ensure compliance and delegate time-intensive checking and re-checking of lender requirements over the transaction period by adding a Navro LC-5 Lender Check report for the lender in question to their OneSearch order.
The report flags changes clearly by showing updates side by side, which enables fee earners to quickly spot new and additional requirements and ensure that these are met in the conveyancing process. What’s more, conveyancers can run time-stamped updates on their report up to five times during a transaction to ensure and demonstrate compliance throughout the process.
The key benefits include:
- Old and New answers shown in summary for instant comparison
- Easy to use – simply complete the relevant details
- Updated at the click of a button, 24/7
- Refresh your results up to five times per case
- Available for any lender listed by UK Finance
- Standardise Practice procedures
- Protect your PI insurance
Getting ready for the Conveyancing Quality Scheme’s (CQS) Core Practice Management Standards couldn’t be easier. Find out more about the LC-5 Lender Check report here, and watch our quick video on how to order on our portal here.
Want to discuss how the LC-5 Lender Check report can benefit you and your firm? Call the OneSearch Service Introduction Team on 01782 433 270 or email firstname.lastname@example.org