According to the Law Society, firms which have undertaken less than four transactions for the building society in the past 12 months will receive a letter from Nationwide informing them of their suspension from its panel.
Law firms have the right to appeal against the decision.
In order to appeal, firms must be members of the Conveyancing Quality Scheme (CQS) and demonstrate either that nationwide transaction numbers are unrepresentative of a firm’s conveyancing activity; or that while the firm’s transaction volumes are low, the firm meets a particular need that is important for the local or national market to retain.
The Law Society has suggested that transaction numbers are “a blunt tool” for cutting panel numbers.
It said that a more sensible solution would be for lenders to work with the Law Society and use the Conveyancing Quality Scheme as the basis of a data sharing solution for lenders. It said this would help to avoid legal practices that have membership on a number of panels from duplicating information on a lender by lender basis.
Nationwide has conducted a mapping exercise to avoid areas being left without firms nearby. It is also undertaking a data collection exercise involving all panel firms to ensure that their records are accurate and complete.
An online facility has been established to enable firms to upload electronically the information they will be requested to provide.
A spokesman for Nationwide said: “In common with many other lenders, we regularly review our solicitor panel from time to time to ensure that it is up to date and that the details we have on file are correct and that the firms are all still active– it makes good business sense for us to do so.
“We are carrying out one of these reviews at the current time and will be reviewing firms who have had none, or very little contact with the Society. We are also asking all members of our panel to update their contact details with us.”
Long term, Nationwide has said that it would like to reopen its lender panel membership and that CQS would be a requirement for new firms applying to join.
