BSA Designator: Penrith Building Society
Jurisdiction: England and Wales
Penrith Building Society Solicitor Panel Assistance:
What are the Penrith Building Society conveyancing panel criteria?
Unlike the CML the Building Society Mortgage Instructions deal with this. Section A.12 states ‘In order to act on our behalf your firm or company must be a member of our conveyancing panel provided we are a society that operates one – see specific requirements for details of our arrangements.
The Special Requirements state:
Firm must have minimum of 3 partners/principals and provide copy of the acting partner's practicing certificate and confirmation of professional indemnity insurance. Contact point see above.
You must also comply with the terms and conditions of your Penrith Building Society solicitor panel appointment.
Is it true that the Law Society has advised that firms check their status on the
Penrith Building Society
The Scottish Law Society has suggested that solicitors should check their lender panel status prior to accepting client instructions to act. The advice is lender-agnostic as it does not relate specifically to solicitors on the
Penrith Building Society
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
I am hearing that agents are using online checkers to see if a firm is on a lender panel. Why?
Many estate agents are suffering if their clients start out on the conveyancing process having appointed a conveyancer who is not on the panel with the purchaser’s chosen lender. Many conveyancing firms are only discovering when they begin working on a case that they are no longer able to work with that lender. Given the inevitable resultant delays in the transaction the chances of an abortive deal increases dramatically. in the circumstances there is understandable anguish on the part of the estate agent as a result of the lost time should the client have to change solicitors lawyers.
Do you have any idea what Lenders such as Penrith Building Society are asking for when it comes to applying to be on their approved solicitor list?
Each lender has different criteria.
We do not hold specific requirements relating to the questions raised as part of the application to be on the Penrith Building Society conveyancing panel. Typically lenders need to have full knowledge of a firm including (but not limited to):
Full complaints history for each conveyancing solicitor
Structure of firm and, where applicable, its group
Charge registration history
Full disciplinary history for each licensed conveyancer
List of all those who fund the firm, including non-lawyers if applicable
List of all those staff who work within the conveyancing team
Automated alerting to inform lenders when there is a fundamental change to the firm e.g. change of name
House price discrepancies (declared to lender vs. registered at Land Registry)
Whether any lender has ever made a claim against the firm’s PII cover
Full career history for each licensed conveyancer including registration date with Council of Licensed Conveyancers
A recent SRA survey reveals that three quarters of solicitors have been removed or threatened with removal from a lender conveyancing panel. Penrith Building Society and other building societies have restricted their panel over the years. Why?
The feeling from lenders generally (we can not speak for Penrith Building Society specifically), is that for too long
solicitors have concentrated on their duty of care to their purchasing
client, and have paid scant attention to the duty they owe to the
lender, whom they conveniently forget is also their client.
Looking from the lenders’ perspective, it has to be said that there
are pressures to encourage smaller panels. The Financial Services
Authority regards the open panel system as a major contributor to
mortgage fraud and negligence cases, and has been leaning on lenders
to move to proactive panel management, which is more expensive the
larger the panel. Hence it is becoming more common for lenders to
charge fees, and/or require extensive form-filling, from would-be
Penrith Building Society and other BSA 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.
My firm is on the Penrith Building Society conveyancing panel. I am
dealing with Penrith Building Society mortgage on a purchase. My
borrower client is asking not to disclose an issue to Penrith Building Society. What do I do in this conflict situation?
When a solicitor is acting for both Penrith Building Society and
borrower there is potential for conflicts to arise. You owe duties to
both clients. All information received by you from your client is
confidential and cannot be disclosed without the client’s consent.
your situation, if the purchaser will not consent
to the information being passed on to the lender, the solicitor must
cease to act for Penrith Building Society and it may well be
prudent for you to cease to act for the purchaser as well. You must not
inform Penrith Building Society of the reason for termination of the
retainer over and above the fact that a conflict has arisen. The fact
that you can no longer act should alert even the most somnambulistic
of lenders that something is wrong with the borrower and/or
purchase. The fact that you have disinstructed yourself should not
affect your Penrith Building Society conveyancing panel status.
I rarely receive a copy of a valuation from a lender these days. Does the extent of my Penrith Building Society conveyancing panel obligations extend to checking the valuation details where I am acting on a purchase with Penrith Building Society as the Mortgagee?
You have a number of obligations in this regard which are to be followed if you wish to comply with your lender client’s instructions as set out in the BSA Mortgage Instructions. (a) You must take reasonable steps to verify that there are no discrepancies between the description of the property as compared to their old address.
What lender panels do you receive the most questions about?
BSA lenders do not come within the top 20 lenders in terms of
frequency of questions. The most popular lender panels in terms of
questions are as follows: