Yesterday I attended the Society for Licensed Conveyancers final regional meeting to present their findings on how to deal with conveyancing risk for lenders. About 25 licensed conveyancers attended the meeting most of whom recognised the need to change their methods of work to build trust with lenders to allow them to stay on lender panels. It was very interesting.
Rather than try to express the detail myself of what they have planned and potentially misrepresent the SCL please see their press release below.
“As the last of the Society of Licensed Conveyancers’ (SLC’s) regional conferences draws to a close, the results from its recent consultation process, which aimed to obtain feedback from Licensed Conveyancers on its new lender panel proposition, are announced.
Over 15% of the Licensed Conveyancer community took part in the consultation, which took the form of an online survey, circulated by the Council of Licensed Conveyancers (CLC) earlier this year. The survey asked Licensed Conveyancers to submit their views on a number of aspects of the SLC’s new lender panel proposition: SLC Quality Assured. This feedback will help to shape the proposition before it is launched later this spring. A summary of the survey findings have now been collated and presented to members of the Licensed Conveyancing community at a series of dedicated regional conferences, sponsored by business partner TM Group, which have taken place over the last month.
The response to the proposed scheme has been very positive, with the majority of those surveyed intending to join the scheme when it launches later this year. 96% of the respondents to the survey also indicated that they would be keen to see the CLC and the SLC work in collaboration on the further development and delivery of this solution and a substantial majority would be happy for data to be openly shared with lenders as well as the CLC.
However, one area that caused considerable debate was that of the payment structure. While the majority of respondents (60%) felt that charging on a per transaction basis was the most appropriate way to structure any payment plan, the amount to be charged proved a hotly contested issue. Suggested, acceptable prices varied from as much as £150 to as little £0.20 per transaction. Overall the consensus was for any fee to remain as ‘low as possible’, with the majority settling on around £10-£20 per transaction.
Whether the cost could or should be passed onto the consumer was another issue, which split respondents. Just over half (52%) of those that took part in the survey felt confident that any additional costs incurred could be passed onto the consumer, while 48% felt that this was either not appropriate or not possible.
John Clay, Chairman, Society of Licensed Conveyancers (SLC) said: “The recent consultation has enabled us to obtain detailed feedback from the profession, which will help to shape the final lender panel proposition, which we plan to launch to the market later this spring. Over 80% of the respondents to the online survey do not currently belong to any form of quality scheme, highlighting an urgent need for a solution such as ours, which is specifically created for Licensed Conveyancers. The one area where respondents raised concern was that of the pricing — both the structure of the payment plan and the likely costs that will be incurred. This is an area that we plan to explore further over the next few weeks, so that we can arrive at a solution that best meets the needs of all involved.”
The SLC will now move forward with developing and refining its proposed solution, taking into consideration all of the feedback that has been submitted. The Society then plans to launch its revised solution to both the conveyancing and the lending community in a few weeks time.
Clay concludes: “The urgency for a scheme such as the one we are proposing has never been greater, as the controversy surrounding the HSBC’s recent decision to restrict its conveyancing panel appears to have picked up pace. Consumers are now adding their voice to the debate — highlighting cases of alleged delays and increased costs as a direct result of the restricted panel. At the SLC, we are very aware of the challenges facing lenders in relation to increased risk as a result of fraud. In fact, this has proved one of the key motivators in our decision to develop our own solution. SLC Quality Assured aims to reduce the risk of fraud for lenders, while ensuring that all SLC member firms have access to all mortgage lenders’ panels, helping us to achieve a positive outcome for all involved — the lender, the conveyancer and the consumer.”
SLC Quality Assured is specifically designed for Licensed Conveyancers and looks to address the issues associated with panel creation – allowing Licensed Conveyancers to either stay on or in fact join lenders’ panels.”
