Accord Mortgages Conveyancing Panel Information

The answer to this question really depends on the reason that your firm has been removed off the Accord Mortgages conveyancing panel. The top 3 reasons are as follows:

1. lack of transactions
2. the lawyer is a sole practitioner
3. as part of the HSBC panel reduction.

In these three circumstances it is unlikely that you would expected to take any action. Disclosure and other compliance considerations are more likely to be relevant if the reason for removal is due to breaches of lender requirements or allegations of fraud or negligence. Whether the reasoning should trigger a disclosable 'material' breach will depend on the firm and the circumstances around possible failures to comply with the SRA Authorisation Rules, and the SRA will judge each case on its own merits. Factors such as the detriment or risk of detriment to clients, the scale of the issue and overall impact on the firm will need to be considered in deciding whether a failure is 'material'. As the compliance officer you will need systems to identify patterns of breaches. Even if you don't consider there to be regulatory implications the firms COFA should give some thought to whether she/he needs to take any action as result of being removed from the Accord Mortgages conveyancing panel.

During 2013, 71 sections of the UK Finance Lenders’ Handbook P2 were changed by Accord Mortgages. Some changes are more important than others but as a firm on the Accord Mortgages conveyancing panel you are of course obliged to comply with individual lender requirements, as set out in Part II of the UK Finance Lenders’ Handbook. Locktons have recently pointed out in an article that non-compliance with Part 2 requirements account for a number of high value claims, and it is therefore important to be aware of any particularly onerous terms that an individual lender may impose.

Remember: CML requirements are not guidelines; they are the lender client’s instructions.

Given that your firm in is on the Accord Mortgages conveyancing panel and you are instructed by them in relation to a leasehold property, you must report to them if it becomes apparent that the landlord is either absent or insolvent. If Accord Mortgages are to lend, they may require indemnity insurance. In any event,you will need to check Accord Mortgages’s specific requirements. Notwithstanding whether Accord Mortgages will lend in such circumstances you still need to advise the borrower (unless you are acting for Accord Mortgages alone) as to the risks of buying a property with an insolvent or absentee landlord.

In this situation please clarify on the application what action you have taken to find out the reasons behind cancellation of your Accord Mortgages panel status. In particular please provide details if you have received communications from the lender. E.G. before revocation of your panel membership did you receive any letters or calls from the lender putting you on notice?

You need to communicate with Accord Mortgages to obtain standard documents. The CML Handbook includes an individual question for banks to enumerate who to contact to obtain standard documents. Accord Mortgages in their Part 2’s state: It is likely that you will need to disclose your Accord Mortgages conveyancing panel reference.