MPowered Mortgages Conveyancing Panel Information

We can't comment specifically on MPowered Mortgages. Many major lenders are now introducing ‘file auditing’ as standard practice in relation to completed matters. This raises questions of confidentiality in relation to the borrower and the purpose to which the results of such audits will be put. The starting point is to remember that the file does not belong to your firm, it belongs to the ‘client’. But, of course, we will normally have two clients – the buyer and the lender - and you will owe a duty of confidentiality to each. So basically, you have to separate the file and just send the lender the parts solely relating to themselves. But, of course, as this will basically be correspondence with the lender, mortgage instructions etc.

Check with your COLP but a firm should not send the complete conveyancing file without the buyer client’s express consent – and if she is in dispute with the lender she is hardly likely to agree. However, if the lender can establish a prima facie case of fraud, then you may be under an obligation to disclose the whole file.

The emerging convention is that lenders are including an authority to disclose in loan application forms to counter this problem. Mortgage Express v Sawali, [2010] EWHC 3054 (Ch) indicates that such provisions are valid. Please click here for more information about that case.

There are many reports available, five of which are as follows:

• Current and historic missed priority dates
• Disclosure/Notification to Lender analysis indicating frequency and nature of disclosures - to include benchmarking analysis against aggregate data
• Number of conveyancing cases by lender
• Average time frame to send deeds to the lender (calculated from completion date or title registration)
• Analysis as to the nature of clients (e.g.existing/new/seen in person)

MPowered Mortgages approved panel lawyers are bound by the UK Finance Lenders’ Handbook instructions relating to Transfer of Equity. These are set out in Section 16.3. First, your firm must approve the form of Transfer of Equity (which should be in the Land Registry's standard form) and, if MPowered Mortgages require, the deed of covenant on their behalf. You will need to check MPowered Mortgages CML Part 2 conditions to see if MPowered Mortgages have standard forms of transfer and deed of covenant. Please note that this requirement can change from one transaction to another so do check! Second,When drafting or approving a transfer, you should bear in mind that: although the transfer should state that it is subject to the mortgage (identified by date and parties), it need give no details of the terms of the mortgage; the transfer need not state the amount of the mortgage debt. If it does, the figure should include both principal and interest at the date of completion, which you must check ; there should be no statement that all interest has been paid to date. Further obligations are set out in the UK Finance Lenders’ Handbook which have to be followed by all firms on the MPowered Mortgages conveyancing panel

With mortgage companies and conveyancing firms working so closely together it is surprising that there has not been greater demand for the introduction of a bit of transparency regarding not just the figures for the MPowered Mortgages conveyancing panel but for all lender panel listings

In this situation please explain on the form what steps you have taken to find out the reasons behind cancellation of your MPowered Mortgages panel membership. In particular please provide details if you have received communications from the lender. E.G. before termination of your panel membership did you receive any letters or calls from the lender informing you as to why they reached this decision?

You need to contact MPowered Mortgages to obtain standard documents. The The Council of Mortgage Lenders Handbook contains a specific section for lenders to reveal who to contact to obtain standard documents. MPowered Mortgages in their Part 2’s state: Don’t forget to quote the firm’s MPowered Mortgages solicitors panel reference.