Nationwide leaves door ajar over “dormancy” panel cut
The Law Society says that Nationwide Building Society's decision to use dormancy as a reason to remove law firms from its mortgage panel is a “blunt instrument” but acknowledged that the building society had left the opportunity open for firms to reclaim a panel spot.
Nationwide has said that only those firms with the Law Society's Conveyancing Quality Scheme or who can prove that they have been active in the last 12 months will be able to appeal to be reinstated.
Law Society chief executive Desmond Hudson said: “We appreciate Nationwide's approach in consulting with us.
'Dormancy based on zero transactions for Nationwide in 12 months is a blunt instrument for panel reviews. There are more sophisticated and accurate ways of assessing dormancy. There is the likely possibility that Nationwide will remove firms who provide high standards in conveyancing.
'I am disappointed that so far we have been unable to persuade Nationwide to take a different course.
“Perhaps to guard against that, Nationwide have sensibly included an appeals process which gives firms who have been removed with a case proving that they have been active a way back onto the panel if they are members of CQS.
“While we welcome what is yet another show of confidence in CQS from the lenders, Nationwide should look again at their dormancy criteria. It makes little sense for them to remove a firm based on dormancy with Nationwide when that firm has had an active 12 months with other lenders.
'Encouragingly, we are in regular dialogue with Nationwide and will continue to debate the issue with them.”
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Solicitors seeking advice and guidance on panel membership, contact the Law Society's Practice Advice Service on 0870 606 2522.
For more information on the Law Society's Conveyancing Quality Scheme visitwww.lawsociety.org.uk/cqs
Find a CQS solicitor in your area athttp://www.lawsocietyapproved.com/Conveyancing.aspx
Contact: Steve Rudaini, The Law Society
+44 (0)20 7316 5624