Lender exchange is a web portal that is highly secured and is meant to be used by legal firms. Moreover, it intends to offer firms a way they can utilise to trade data and information with lenders. Lender exchange also helps lenders manage company conveyancing panels. Generally, lender exchange is meant to promote easy interactions between solicitors and lenders. The main reason behind this is to aid in the reduction of risks caused by fraud. It provides a reliable and safe portal through which solicitors and lenders can share useful information.
Who is benefitting from the lender exchange?
Lenders on board the lender exchange include; HSBC bank, Santander, Lloyds banking group, and Royal Bank of Scotland. Lender exchange is a secure web portal that tackles the concern of several lenders looking for the same data that law firms provide as a means of managing the wide range of conveyancing panels under them.
Lender exchange makes it easy for law firms to submit data via a single, secure system through which lenders that also use the scheme can gain access to the data. In turn, the lenders can independently manage different panels.
Genesis of lender exchange
In recent times, mortgage lenders been struggling with major risks that have been caused by fraud revolving around mortgages. These frauds lead to massive losses. Because of this, lenders have always been on the watch out for any additional information which law firms supply relating to the operations of their businesses. They also provide information regarding employed individuals.
Lender exchange was developed to help law firms offer their lenders correct information to manage their panels well. This move aimed to meet all the regulatory requirements that lenders are required to act upon as conduct of alert before proceeding with any kind of transaction.
Law firms also benefit by supplying the necessary information only once. The centralised point is helpful and therefore, it majorly reduces the possibilities of dealing with many requests. Lenders have the option of choosing who makes up their panel. Lenders who sign up meet the mandatory conditions necessary for panel membership, including firms submitting information via lender submission platform.
What are the benefits for clients?
There are several benefits enjoyed by clients using the lender exchange. It aids communication between solicitors and lenders and reduces risk of fraud. The website provides a secure portal for exchanging information by both parties.
With the service, there is significantly less administration required. Previously methods of postal or document exchange were tedious and could take a number of days. As technology evolves, both lenders and conveyancers are well equipped to exchange information electronically.
The additional bonus is that there are significantly reduced delays for the client. Not only is their information handled securely, but the time it takes to transfer this information is far faster.
Any documents and forms that were traditionally sent around could cause lengthy delays and weren’t even entirely secure. Signatures required for certain documents meant sending documents to multiple parties. If anything was ever lost in the post, serious delays could occur.
With the Lender Exchange, unnecessary stress and delays are prevented through the transaction of information online. Forms can be downloaded, signed and sent to solicitors and lenders for a quick and easy experience.
Why many people are not signing up
You may wonder why many conveyance companies are not part of the platform, yet it offers excellent services. Some conveyance companies have accepted to be part of this platform. Despite the sign-up process being slow, other lenders are using advanced panel organisation techniques such as using personalised panels and their governance procedures that may vary from other lenders.
For the charging criteria to change, it will always depend on the firm size. They are often gauged depending on the size of partners involved, directors operating the organisation, in case they specialise in conveyancing and members on board. The annual fees are meant for system administration despite the number of panels a firm can apply to. In the first three years, there will be an annual feel expected to be fixed.
Usually, firms will pay an administration charge but this will be made annually by direct debits. The payable fee will vary depending on the number of directors, employed partners or directors at the time of renewal. Firms need to keep in mind that charges are made annually and the payment they make will cover 12 months.
A firm that wishes to join midway will be charged just for the remaining period. Once they renew, they can now make full payments. The charge will take care of the renewal cost that is remitted each year which signed-up lenders will use for the system to manage their panels.
However, firms need to keep in mind that the amount they pay will not act as a pass towards joining panels. The charge will be for covering the system administration and validating information on behalf of lenders. Once the data is processed, lenders will decide whether they wish to appoint or reappoint a firm.
How can law firms apply to the lender’s panel?
There are two possible options that law firms can use:
- Firms that are unregistered: The firm will need to be registered first for this case. Then, they will be needed to answer a few pre-qualification questions, which will decide the lenders they will be allowed to apply. Then, they will have to choose a lender of their choice from a list of many. They will then be provided with credentials which they will use to log in and complete registering. If the lender does not show up on the list, it will imply that their request to apply has been turned down.
- Firms which are included on the system already: When logged in, it will be possible for firms to proceed with navigating to the panels screen and choose lenders who are affected when they check or tick the checkbox. Make sure all information is up to date and submit your application via the home page link. If the lender doesn’t exist on the list, the required criteria have not been met. Therefore, the application will not be allowed.
Not all applications are guaranteed. Sometimes lenders require mortgage applications to have begun before they can review the application.
Why you should sign up to lender exchange
This platform intends to reduce overheads when it comes to panel firms. It offers a solution that allows validation and provision of information in a single reliable central place. This will guarantee a reduced of risks to lenders who can otherwise choose to introduce independent charges to help recover from the rising price of administering private panels.
It would lead to an unnecessary but important burden for organisations. This will make it be a costly affair. If lenders adopt the system, law firms and lenders will be the major beneficiaries, using a central point for collecting information. This will reduce the need for firms having to offer similar information to several lenders repeatedly regularly.
Moreover, law firms and lenders will communicate easily via a provided mailbox. Direct contact will make it possible to save effort and time for tracking down the reliable person to respond to questions on panel applications and panel membership
Lender exchange offers several benefits such as:
- Ability to gain access to current information. The members are able to make changes to their standard mortgage documents with no legal issues awaiting them.
- Continuous customer choice. It’s possible to maintain panel sizes since extra legal fees are minimal.
- Simplified fee structure. Lender exchange is cost-effective as the system is centralised.
- Improved communication. This means that exchanging information is easy and it’s easy and quick to access relevant information.
- Reduced administration. This will mean that more lenders can gain access to relevant information first hand. Moreover, lenders are able to learn about the latest information on sales and property purchases.