Eddie Goldsmith, chairman of the Conveyancing Association (CA), said that conveyancers play a critical role in tackling mortgage fraud, but those without effective procedures in place to minimise fraud are unwittingly causing a threat to lenders.
Major lenders, including Lloyds Banking Group and Nationwide, have already slashed the number of conveyancing firms on their panels in an attempt to reduce fraud and Goldsmith said this will only continue unless the industry acts.
Goldsmith said: “The CA believes that the industry needs to recognise that we don’t have a divine right to be on lenders’ panels and therefore need to accept that lenders must manage their risks to reduce fraud.
“We understand and respect that lenders will only want to work with conveyancers who offer a superior service, can demonstrate high quality standards, competence and probity of staff, financial stability, and good management of staff and administrative processes.”
He added that mortgage fraud will never disappear, but the industry could improve the situation.
Goldsmith said: “If our industry works together to raise standards and improve due diligence, this will go a long way in building the confidence of lenders and consumers in the integrity of services provided by the profession.”
