Law Society calls for lending panel solution
The Society has called on Secretary of State for Business Vince Cable to support a long term solution to issues surrounding the composition of panels.
In a letter to members Law Society chief executive Desmond Hudson said that he recognised the reasons driving lenders to change the composition of their panels, such as the FSA pushing for more intensive panel management to cut down on fraud.
He said despite the understandable rationale that: “We consider that many of the changes lack coherence, are based on questionable rationale and impact on both the profession and the public in a damaging way.”
The call for Vince Cable to support dialogue between the Society, the Council of Mortgage Lenders, the banking regulator and lenders comes off the back of Santander’s recent cuts.
Mr Hudson described Santander’s cuts as having used a “what we consider to be a crude and unfair methodology”.
The Society have said that any discussions will emphasise the importance of the Conveyancing Quality Scheme (CQS), which they beleive can address the key concerns of lenders, while avoiding the damaging impacts of unnecessarily restrictive panels.
Mr Hudson has urged members to contact their MP regarding the issue and the Society has produced a briefing pack for members to assist with this.
To see the full text of the statement please visit; http://www.lawsociety.org.uk/news/stories/lender-panels–society-calls-for-long-term-solution/