Its understandable lenders have reacted “vigorously” by slashing panels, said Coogan, predicting the trend was likely to accelerate ahead of the Financial Services Authority (FSA) published findings on financial crime in June this year.
Coogan said he expected lenders to be more defensive and try to identify problems earlier, rather than assuming solicitors will always be professional.
Coogan said: “There has simply been too much fraud, and poor professional performance, for lenders to accept the business risk of allowing anyone in the profession to introduce business to them.
“Put simply, they will want more direct control and controlled costs,” he said.
Coogan also highlighted that many lenders remained unsure about the impact or influence of the Law Society’s Conveyancing Quality Scheme (CQS) and that panel management was likely to be many lenders preferred quality control route unless the CQS reaches critical mass.
Eddie Goldsmith, chairman of the CA, said: “We have already seen major lenders such as Lloyds Banking Group and Nationwide reduce the number of companies on their panels and I believe others will follow in their footsteps.
“The FSA’s expected publication on financial crime is likely to act as a catalyst for change later this year. Our members recognise that unless they are quick in taking appropriate action and ensuring they have rigorous measures in place, they could be left in a vulnerable position,” he said.
Launched in 2010, the Conveyancer’s Association is a not-for-profit trade body, representing the interests of licensed solicitors and conveyancers in the UK.
