CML Lenders Handbook Update

Lenders make major changes to their standard instructions.

The Council of Mortgage Lenders (CML) has revealed the latest alterations to the standing mortgage lending conditions that will relate to the vast majority of buyers. Whilst most of the changes are administrative in nature, solicitors will be obliged from 1st December to comply with the one significant new obligation imposed.
 
Lenders, and the Law Society, have been caught out in the last year by fraudsters masquerading as a legitimate solicitor's firm. Regrettably, the fraud was not discovered until after one lender had issued mortgage funding which was used to purchase a property from a criminal operation, which had set itself up to look for all intents and purposes like a branch of a real firm of solicitors based elsewhere in the country. As a result, mortgage and purchase funds were sent to a bank account with no connection to a regulated firm of solicitors, and so could not be protected when the fraudsters withdrew the money for their own purposes.
 
As a consequence, the CML now makes it the responsibility of the solicitor acting in the purchase and mortgage to vouch for the legitimacy of the seller's legal representative, and to report to the lender if they cannot be confident that they are who they say they are. Indeed, some of the individual lenders within the CML organisation will require acting solicitors to disclose the identity of the seller's lawyer in every case, whether legitimacy is suspect or otherwise.
 
Some solicitor's firms will be reluctant to acquire yet another administrative burden on behalf of the mortgage lender. However, here at O'Neill Patient, the security of our client's funds, both private and mortgage, has been paramount for many years. That is why we had already implemented a layer of administrative security in every transaction we undertake to ensure that the identity of the lawyer on the opposite side of our transactions is verified as far as is possible, before it became mandatory to do so.
 
In order to benefit from the confidence our conveyancing clients all have when they instruct O'Neill Patient to act for them, please call Claire Feehily or Karen Downs on 0844 576 2020 from our conveyancing teamfor your sale or purchase, or Martin Bourke on 0844 576 2121 for your remortgage.

Contact us

O'Neill Patient Solicitors LLP
Chester House, 2 Chester Road, Hazel Grove,  Stockport, Cheshire, SK7 5NT

Telephone:

0161 694 3000 / 0161 483 8555

E-mail:

info@oneillpatient.co.uk

Fax:

0844 576 2140 (we do not accept service by fax or email)