NRAM Ltd Conveyancing Panel Information

The Law Society of Scotland has advised that solicitors should check their lender panel status before accepting client instructions to act. The advice is lender-agnostic as it does not relate specifically to solicitors on the NRAM Ltd conveyancing panel. The recommendation arises from the practice of a number of mortgage lenders who remove solicitors from their panels without prior notice as part of their panel management system, which can lead to some solicitors discovering this only once instructed. This is sensible advice as a client finding out midway through a transaction that their lawyer is not on the approved lender panel is very frustrating and can lead to complaints. Many online consumer forums contain posts where someone is complaining about finding that their lawyer is not on a lender conveyancing panel. Such forums include moneysavingexpert.com

During 2013, 0 sections of the UK Finance Lenders’ Handbook P2 were changed by NRAM Ltd. Some changes are more important than others but as a firm on the NRAM Ltd 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.

You have a number of obligations in this regard which are to followed if you wish to comply with your lender client’s instructions as set out in the UK Finance Lenders’ Handbook. First, You must take reasonable steps to verify that there are no discrepancies between the description of the property as valued and the title and other documents which a reasonably competent conveyancer should obtain, and, if there are, you must tell NRAM Ltd immediately. (II) You should take reasonable steps to verify that the assumptions stated by the valuer about the title (for example, its tenure, easements, boundaries and restrictions on its use) in the valuation and as stated in NRAM Ltd’s mortgage offer are correct. If they are not, please let NRAM Ltd know as soon as possible as it will be necessary for NRAM Ltd to check with the valuer whether the valuation needs to be revised. NRAM Ltd conveyancing panel solicitors are not expected to assume the role of valuer. NRAM Ltd are simply trying to ensure that the valuer has valued the property based on correct information. (c) NRAM Ltd recommend that you should advise the borrower that there may be defects in the property which are not revealed by the inspection carried out by their valuer and there may be omissions or inaccuracies in the report which do not matter to them as a lender but which would matter to the borrower. NRAM Ltd recommend that, if we send a copy of a valuation report that NRAM Ltd have obtained, you should also advise the borrower that the borrower should not rely on the report in deciding whether to proceed with the purchase and that he obtains his own more detailed report on the condition and value of the property, based on a fuller inspection such as a homebuyers survey or structural survey. If you do not receive a copy of the valuation you can always ask for a copy of one from NRAM Ltd or the borrower. You still need to comply with the UK Finance Lenders’ Handbook Requirement relating to valuation reports even if you don't receive one directly. Failure to comply not only runs the risk of facing a claim by the lender but also being removed from the NRAM Ltd conveyancing panel

With lenders 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 NRAM Ltd conveyancing panel but for all mortgage panels

CQS membership gives no guarantee to lender panel acceptance. Nevertheless the CML have indicated that it is likely to become a prerequisite for firms wishing to remain on their approved list of firms. Some mortgage companies now use the scheme as the starting point for Panel membership as is the case with Astra Mortgages.

You would be advised to get in touch with NRAM Ltd to obtain standard documents. The The Council of Mortgage Lenders Handbook includes an explicit section for lenders to set out who to contact to obtain standard documents. NRAM Ltd in their Part 2’s state: Please remember to disclose your NRAM Ltd conveyancing panel reference.