Kensington Mortgage Conveyancing Panel Information

The extent and frequency of changes varies from lender to lender.

In 2013, 71 section changes were made to Kensington Mortgage Part 2 requirements, which are of course part of the instructions of to the Kensington Mortgage conveyancing panel.

Lexsure has not been advised of any intention on the part of the CML to develop such a search facility.

In operating open conveyancing panels, lenders such as Kensington Mortgage face a number of fraud and negligence risks. While there is no authoritative source of data on lender exposure to solicitor-led mortgage fraud, anecdotal evidence from lenders indicates exposure on individual cases are often in the millions of pounds. The National Fraud Authority estimates that £1bn per year is lost in mortgage -related frauds in total, which is seen as a conservative estimate.

These risks are exacerbated by the lack of a comprehensive set of data on all conveyancing firms (which, for the avoidance of doubt, would include solicitors and conveyancers across the UK), in a readily accessible format. Currently, lenders vet the suitability of their panel firms against a variety of disparate, incomplete and potentially inaccurate sets of information. One out of the top five lenders pointed out to us that it is almost impossible to track individual fraudsters who move from firm to firm, especially where they are no longer registered or no longer hold a valid practicing certificate.

Kensington Mortgage and other lenders are in varying stages of reviewing their approach to vetting firms on their conveyancing panels, in order to ensure that their ongoing exposure to unsuitable firms is reduced. There is also regulatory pressure on lenders to ensure that they have satisfactory oversight of their third party panels, including a due-diligence process.

In order to be on the Kensington Mortgage conveyancing panel, solicitors have to complete an application form and agree to Terms and Conditions. A sample of conditions that we see amongst many lenders Terms (but not necessarily Kensington Mortgage) are as follows:

• If you are a sole practitioner, to arrange for appropriate locum cover from our panel where necessary. Your locum must be a member of the Conveyancing panel.
• To notify us in writing of any change in your details in our records, for example, change of address, telephone number, document exchange number email address. Notification must be given to us at least 10 days before the change will be effective.
• To carry out our instructions with reasonable care and skill, ensuring that all employees doing mortgage work on our behalf are qualified and competent to do so
• To quote on all communications with us relating to deeds/registration issues, whether by telephone or in writing, the panel number that we provide for each practising address and the mortgage account or application number for the mortgage concerned.
• That any deeds you borrow from us in connection with the personal mortgage of a partner or director at your firm must be requested by a partner or director other than the partner or director concerned, and the transaction must be handled by that other partner or director. If you are a sole practitioner and require the loan of deeds in connection with your own mortgage, you must nominate a different firm on our panel to request the deeds and handle the transaction.
• You have the consent of all borrowers to apply for the deeds, before making any request for deeds. We will accept your request for deeds on the understanding that you have obtained such consent. If this is not the case then you should advise our Deeds Services Department in writing when you make your request
• To keep us informed of the reasons for any delay in your being able to send the title deeds and documents we require to us within 3 months of completion or evidence of proof of registration within that period. (We will send reminders if the deeds have not been received but will not acknowledge receipt of deeds.)
• To be responsible for the reconstitution of the title deeds (whether the title is registered or unregistered, at your own cost), where any deeds in your possession, or were last known to be in your possession, go missing
• To forward the title deeds and documents to another solicitor/conveyancer within 24 hours of an instruction from us requiring you to do so. On forwarding the deeds as instructed you will confirm to us that you have done so. Upon receipt of your confirmation, we will release you from all undertakings relating to your holding the title deeds.W
• Without prejudice to your obligation to comply in full with the Safeguards provisions in the CML Lenders’ Handbook, to report to us as soon as possible any suspicion that you have about the genuineness of any transaction in any respect

It is important that you take note of such changes because sending a communication or deeds to the wrong address can cause delays that might not only affect your borrower client but also impact your chances of staying on the Kensington Mortgage solicitor panel. Let’s say that Kensington Mortgage change their requirements as to where the post completion documents should be sent. Do you update the details in your case management system? Do you make a note? Is this communicated to the staff? By virtue of your COT Kensington Mortgage, you are giving assurances that you will send the relevant documents within 10 days of receiving the Title Information Document. Leaving to one side whether you are technically breaching an undertaking in sending it to the wrong address, you run the risk of Kensington Mortgage suspending you off the panel because you did not send the deeds in accordance with the COT. It will not be a valid excuse to say that you sent it to their old address.