Anthony Ruane of Optima has said, “Lenders are waking up to the idea that they need to take more control over their own destiny in appointing firms to act in the future” and that “Lenders now have a golden opportunity to take a leading role in the house purchase transaction”.
Optima is one of the largest volume solicitors practice operating in the conveyancing market. It was previously backed by Capita and is known for having strong relationships with lenders and provides them a number of volume legal services.
In a report published on its website Anthony Ruane the Lead Property Partner explains that a number of factors are resulting in consolidation and claims that consumers may want lenders to have greater involvement in how consumers choose conveyancers.
Arguing that the recession has already produced a significant reduction in the number of conveyancing firms so that lenders and consumers have less choice than they used to, and that a rise in fraud and negligence claims has resulted in the perfect time for lenders to reflect on their role in the selection of conveyancers.
Anthony Ruane goes on to say;
“Lenders have been rightly concerned over the significant rise in fraud and negligence involving complicit professionals, the demise of Quinn Insurance, and the further uncertainty with the proposed lack of automatic lender cover in the new PII arrangements.
Against this negative backdrop, the Law Society has been trying to restore credibility by introducing the Conveyancing Accreditation Scheme to provide a “kitemark” of quality. Failure to be accredited is likely to lead to further consolidation.”
With consumer behaviour altering so that buyers try to get a mortgage before they look for a house due to the shortage of mortgages lenders have the first chance to sell their conveyancing services.
Do you think that lenders will take Optima’s advice and if so what strategies will your firm adopt in the changing market.