Nedbank Conveyancing Panel Information

In operating open conveyancing panels, lenders such as Nedbank 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) which is 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 top 5 lender 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.

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

One might ordinarily expect Nedbank via their Part Two conditions to address this but the Handbook is silent on time frames. You need to look at the Terms of Nedbank’s Conveyancing Panel Appointment that you entered into. For a number of banks these Terms include a provision such as: ‘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’ It is important to keep Nedbank informed. Law firms can often compound their problems by not communicating with the lender when there is a delay or problem.

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

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

The majority of lenders do not operate a specific buy to let conveyancing panel but we are hearing about a few that do. We do not know what the position is with Nedbank as at todays date. If you're about to receive instructions from a client on a buy to let purchase with a mortgage from Nedbank we suggest that you call Nedbank to check the position.

In the circumstances please explain on the form what steps you have taken to discover the reasons behind cancellation of your Nedbank panel membership. In particular please provide details if you have received communications from the lender. E.G. before cessation of your panel membership did you receive any letters or calls from the lender advising you as to their reasons?

You should contact Nedbank to obtain standard documents. The CML Handbook includes an express section for banks to establish who to contact to obtain standard documents. Nedbank in their Part 2’s state: Please remember to quote the firm’s Nedbank conveyancing panel reference.