OneSearch Direct urges carriers to be extra vigilant with lender’s manual requirements
OneSearch Direct, the UK’s largest local search data company, has urged carriers to be cautious when checking for updates to Lenders Part II inquiries, after it It was reported that a significant number of changes had been made to lender requirements over the past year.
In light of the economic uncertainty, OneSearch believes that an increase in unemployment and repossessions could mean that lenders could seek to target carriers to recoup any losses.
Navro Compliance reports that on 250 lenders:
- 75 lenders updated their requirements in 2020
- 62 lenders have updated in 2021 so far
- There have been 130 questions updated in the last 30 days
Navro, who launched the LC-5 Lender Check report, also states that while they recommend carriers do a lender check on the day of appraisal and, at a minimum, just before the trade-in to ensure that there was no change, the data suggests only one check is in progress. With the constant changes in Part II of the Lenders Handbook, this makes cedants vulnerable to IP claims.
To help mitigate the risk of non-compliance, OneSearch Direct is doing the LC-5 Lender Verification available to all customers. This report clearly highlights any changes in the requirements of Part II of the Lender’s Manual for affected lenders within a specified date range. It also indicates whether there have been any changes. So if you are audited you have a simple, visual record of your compliance. With the LC-5 Lender Check, the requirements of UK Finance Part II are queried 4 times a day.
Lidia Quinlan, Sales Manager, OneSearch Direct, comments:
“The importance of verifying the requirements of the Lender’s Manual cannot be overstated, as failure to do so may result in failure to pass an externally commissioned lender audit. Such failures leave law firms open to insurance claims, panel strike and potential SRA action, not to mention reputational damage that no price can be charged.
“Having to constantly monitor changes to the lender’s manual puts even more pressure on carriers who already have their plates full at the moment. This is why we are delighted to be working with Navro to bring LC-5 Lender Checker to our customers. It allows you to refresh results up to 5 times per case – particularly useful at the moment with longer transaction times – and the report is presented clearly for ease of interpretation, to be kept in your file for future reference. ‘audit. “
Mike Georgiou, Director, Navro Compliance, comments:
“Switching to UK Finance means lenders have access to make changes to their Part II 24/7 and it appears they do this on a regular basis. The fact that UK Finance does not keep a database of changes made means that it is up to you, the carrier, to keep you correct.
“The LC-5 Lender Check is all about peace of mind, convenience and accuracy. Because it was developed through conveyors for transmitters, the LC-5 ticks all the boxes and gives you the confidence that you know you are embracing the latest changes. Not only that, but you can standardize best practice procedures for intra and inter-branch compliance. “
For a limited time only, OneSearch is offering a free LC-5 lender check to carriers. Click here to claim your free LC-5 report.
Updated Lender’s Manual for Carriers – Tuesday 13e April 2021 at 1:00 p.m.
OneSearch Direct and Navro are offering all carriers a free webinar to review the frequency of manual changes and discuss the importance of getting updates before submitting your certificate of title. We will also discuss the need to keep evidence on file for any IP or audit issues and to minimize the risk to your business.
If you cannot make this date, but would like a recording later, please click here.
To learn more about the LC-5 Lender Verification, call the service presentation team on 01782433270 or by e-mail [email protected]. You can request sample reports by clicking here.
For more information on OneSearch Direct, visit oneearch.direct or call the head office on 0800 052 0117.
This article has been submitted for publication by OneSearch Direct as part of their advertising agreement with Today’s Conveyancer. The views expressed in this article are those of the author and not those of Today’s Conveyancer.