Managing Lender Risks
Nick Larkins
Mortgage Fraud Controls Manager
Lloyds Banking Group
November 2014
Purpose of today’s presentation
•Dispelling the myths
•Our approach to panel management
•Challenges of panel management
•Why Lender Exchange?
Lloyds panel
•
Large panel approx 4,400 firms across the UK
•
Stable member numbers
•
Open to new members
Panel Profile
9%
19%
16%
Sole
Practitioner
2-4 Partners
5-10 Partners
10+ Partners
•
No restriction on firm size
•
No intention to reduce panel
•
Proactive panel management approach
56%
Approach to panel management
Our Solicitor Panel provides an essential part of our
risk control framework
Compliance with bank policy and regulatory requirements
Ongoing due diligence of panel members
Panel application management
Minimise fraud / negligence loss
Improve standards
Support smooth customer journey
Challenges today
• Transparency – ‘Fronting’
• Land Registry delays
• CML Handbook concerns
• Scheme abuse
• PII
Internally we are working on:
• Automating our redemption process
• Updates to CML part 2 to provide further clarity
• Acknowledging receipt of the COT
Why Lender Exchange ?
•
We have already proven the concept works………………………
•
Underpins our strategy to maintain a large open Panel
•
Avoids bank introducing its own Panel Fee
•
Provides a secure way to easily inform LBG of key changes to firm
ensuring panel records are always accurate
•
Information submitted to one central point, shared by all participating
lenders
•
Allows bank to track movement of ‘problem individuals’ protecting
your firms reputation and panel status
•
Ongoing due diligence checks hardwired into system
In summary……….
•
Good progress in recent years
•
Valuable relationships forged – working together
•
Market conditions are changing the risk profile
•
Scheme abuse, manipulated deposits, hidden representation and
basic CML breaches are a concern
•
Expect continued assurance activity by lenders
•
Lender Exchange is designed as a benefit to all parties……..
QUESTIONS?
Lloyds Banking Group – Panel Management Team
01422 333985
$conveyancingpanel@halifax.co.uk