Xit2 will use the service to run data checks on conveyancers used by lenders, as well as make visits to their premises to ensure PI insurance and passports are in order.
Once the initial checks are complete, continuous data checks are carried out by the team to help lenders monitor the quality of the solicitor panel.
LCX then sends this data to the lender, allowing them to detect and manage potentially fraudulent firms and individuals.
Mark Blackwell, managing director of xit2, said: “Lenders have been crying out for help to stamp out conveyancer fraud. Our service provides lenders with accurate and updated information on their conveyancer partners and the people that work within those firms.”
Xit2 said that LCX also helps lenders ensure their panels adhere to the standards laid down by the Conveyancing Quality Scheme (CQS).
Blackwell added: “The CQS provides a laudable quality standard to conveyancer practice, but guidance on policies and procedures are only useful if people comply with them. The CQS on its own is not enough, which is why lenders want to bring the selection of conveyancer firms under their direct control in a market fraught with risk.“
Karen Babington, corporate sales director of conveyancer myhomemove, said: “I agree that CQS is not enough for lenders to rely on for two reasons. Firstly CQS requires law firms to self audit and secondly licensed conveyancers are excluded.
“Around 430 firms boast the CQS accreditation representing around 6.5% of the market. We are yet to hear how many law firms have failed to make the grade which will be very telling.
“Our experience is that a ‘one size fits all’ auditing service will not accommodate the needs of lenders who will require different solutions to the management of their conveyancer panels.”
