Royal Bank of Scotland -Natwest One Conveyancing Panel Information

The CML, along with Royal Bank of Scotland -Natwest One and other lenders created a standard set of requirements where a conveyancer is acting for a lender such as Royal Bank of Scotland -Natwest One alone in a residential conveyancing matter. These requirements are contained at Part Three of the UK Finance Lenders’ Handbook and are to be followed together with Sections One and Two. The CML have published an example requirements letter to the borrower’s conveyancer for adaptation by the lender's conveyancer, and sets out to the borrower's conveyancer, the documentary and information requirements of the lender's panel solicitor.

In operating open conveyancing panels, lenders such as Royal Bank of Scotland -Natwest One 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.

Royal Bank of Scotland -Natwest One 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.

The Council of Licensed Conveyancers has entered dialogue with lenders and their representative bodies to see whether and how the risks that lenders wish to mitigate could be addressed through the regulatory framework rather than via ad hoc arrangements that can differ from lender to lender. We expect that that the CLC have been in touch with lenders such as Royal Bank of Scotland -Natwest One since 2008 which is when lenders started being more restrictive.

You will be aware of the trend in recent years for lenders such as Royal Bank of Scotland -Natwest One to take a much more pro-active approach in relation to the management and make up of their conveyancer panels. The knock on effect of this is that it is more likely that there will be a higher number of cases where a conveyancer is not on the Royal Bank of Scotland -Natwest One panel. The situation that you find yourself in is where your client’s purchaser has his/her own lawyer and Royal Bank of Scotland -Natwest One have appointed a separate lawyer to act on their behalf where the new CML Part 3 requirements apply. Section 11.1 of the UK Finance Lenders’ Handbook Part 3 requires Royal Bank of Scotland -Natwest One’s panel solicitor to ‘ ...transfer the mortgage advance directly to the Seller’s conveyancer. The Seller’s conveyancer must be required to hold the mortgage advance on the terms of the required undertaking. The example borrower’s conveyancer’s undertaking letter includes a specific example of the seller’s undertaking’. You should expect to be advised to received the mortgage advance directly from the conveyancing solicitors for Royal Bank of Scotland -Natwest One. You will no doubt be required to undertake directly to Royal Bank of Scotland -Natwest One’s solicitors to discharge any charges secured on the property and to send directly to them the executed transfer and any other documents required to enable us to effect registration. Please remember to carefully consider undertakings in accordance with your firm’s protocol and record them in your undertakings logg. Please remember that as well as this breach of this undertaking having regulatory and compliance implications it’s breach could also result in your firm being removed off the Royal Bank of Scotland -Natwest One conveyancing panel.

CQS accreditation is no guarantee to lender panel acceptance. Nevertheless the Council of Mortgage Lenders have indicated that it is likely to become a prerequisite for firms wishing to remain on their approved list of firms. A number of mortgage companies now use the Conveyancing Quality Scheme accreditation as the starting point for Panel acceptance as is the case with Santander.

You need to contact Royal Bank of Scotland -Natwest One to obtain standard documents. The CML Handbook includes an individual inquiry for lenders to set out who to contact to obtain standard documents. Royal Bank of Scotland -Natwest One in their Part 2’s state: It is likely that you will need to quote your Royal Bank of Scotland -Natwest One solicitors panel reference.