Collins, head of mortgage fraud at the bank told delegates at the Conveyancing Association’s (CA) Christmas Reception, that Lloyds will be forced to take further action if firms continue to commit mortgage fraud.
He said: “We have looked at our conveyancing panel and made changes to create a level playing field so that the firms on our panel are those that are doing a certain level of work with us on a regular basis and are familiar with our practices. These haven’t been arbitrary decisions, but ones which we believe will safeguard us and our customers against mortgage fraud.”
He added: “The future for panel management is interesting with some developments already taking shape, such as accreditation schemes, although these will only work if they reach critical mass.”
Collins told delegates that the industry needs to find a solution to vet and monitor firms whereby banks can retain individual panel eligibility criteria.
“In the meantime, unless individual firms improve their processes, lenders will be forced to re-assess their panels.”
Eddie Goldsmith, chairman of CA added that it’s committed to working with brokers and lenders to improve the situation.
“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. As Collins rightly pointed out, if firms fail to address the issue, the future doesn’t look very promising for them.”
