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15th June 2020

What is Lender Exchange

Lender exchange refers to a service that is a creation of Decision First whose intention was to facilitate easy interactions among lenders and solicitors. The intent was to help in the reduction of risk that is brought about by fraud as it offers a safe portal that can be used in the exchange of useful information.

Who is using the Lender Exchange

Currently, lenders that are on board include Lloyds Banking Group, Santander, Royal Bank of Scotland Group as well as HSBC Bank. The safe web portal is meant to address the concern of having multiple lenders seek the same data offered by law firms as a way of managing the different conveyancing panels under them.

It makes it possible for the submission of data by law firms through a single, secure system where lenders who are part of the scheme can access data that, in turn, allows them manage different panels independently.

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The Genesis of Lender Exchange

Recently, mortgage lenders struggled with major risks caused by fraud surrounding mortgages, which led to massive losses. As such, lenders have been on the lookout for additional information that law firms supply regarding the operations of their business, as well as about the employed individuals.

Decision First took the bold step to develop this famous Lender Exchange, which enables law firms with offering their lenders the right information for the management of their panels better. This move aimed to meet all added regulatory requirements that lenders are expected to match as a conduct being alert before engaging in any transaction.

Law firms also tend to benefit by having to supply the needed information only once and the centralized point helps, thus majorly reducing impacts of having to deal with several requests.

Can Lenders appoint unregistered conveyancers to be part of panels without having to be registered?

Lenders have the option of choosing their panel composition. Lenders that sign up, meet mandatory conditions required for panel membership, including the need for firms to submit information through Lender Exchange platform.

How do Clients Benefit?

Several gains result from using Lender Exchange. Lender Exchange website came into existence to fix the problem of more than one lender needing to access the same content from relevant law firms in order for them to better manage their own conveyancing panels, it was also driven by the need for lenders to minimize their risks. Many lenders are paying more attention on using Lender Exchange which means that law firms also gain in the process because they get to supply their content one time as opposed to when they would do it repetitively.

One of the most important gains is reduced administration. The platform is specifically designed to reduce or eliminate delays for clients. Before, a lot of bureaucracy led to delays that interfered with proper business execution.

According to the system, lenders can send varied mortgage offers targeting solicitors via electronic means. Adopting the electronic channels helps quicken the process compared to the older Document Exchange or postal service.

Conveyance companies tend to be well-equipped to receive documents electronically, meaning that they can efficiently handle documents they receive via Lender Exchange Usually, mortgages offers are often followed by forms that include Mortgage Deeds, that are provided to clients for them to append their signatures.

Before the existence of Lender Exchange, offers would be without necessary accompanying documents, which would, in turn, trigger avoidable delays since solicitors would be forced to ask for the forms independently. The Lender Exchange’s task is to make standard documents like Mortgage Deeds. They also ensure that the Mortgage consent forms can easily be accessed and downloaded. The possibility of manually downloading forms makes it possible for solicitors to prevent delays.

While not many clients may not know about Lender Exchange, it is still possible for them to benefit when they make use of this effective system. Having to wait until lenders are able to procure mortgage documents may result in unnecessary and avoidable delays, not to mention the stress that comes with it, hence hurting clients. This platform is a representation of a newer communication channel that can help deal with the said delays.

Why are Many People not Signing Up

One may wonder why many conveyance companies are not already on board yet this seems to be an excellent service. Decision First has been active in carrying out discussions concerning Lender Exchange. The company is speaking to many lenders, and may not be able to influence how fast they sign up to the platform.

Some companies have accepted the move faster than others. Apart from the slow signing up, other lenders are already using diverse panel organization techniques including the use of personalized panels, and their governance procedures may vary significantly from other lenders.

Payment of Services

The charging criteria depend on the firm’s size. They are often gauged by how many partners are involved, the members on board, or the directors running the organization, and whether they specialize in conveyancing. The annual fee goes towards the system administration regardless of how many lenders panels a firm applies to. An annual fee expected is fixed in the first three years.

Firms pay the administration charge is annually by direct debits. The fee payable is based on the number of partners, directors, or employed members at the time of renewal basis. Firms need to note that they the charges are done annually and the payment covers12 months.

Any firm that wants to join midway is charged but only for the remaining period. They will make full payments when they renew. The charge will cover a renewal cost that is remitted each year that signed-up lenders will depend on the system for the administration of their panels.

Firms should know that the amount they pay is not a pass to join panels. Instead, the charge is meant to cover the administration of the system as well as information validation on behalf of lenders. The moment the data is processed, lenders can decide whether to appoint or reappoint a firm.

How law firms can apply to Lender’s Panel

Law firms can use two possible options.

  1. Firms that already exist on the system – When logged in, it is possible for firms to continue with navigating to the Panels screen and choose the affected lenders when they tick or check the checkbox. Ensure that all the information is updated, and your application should be submitted through the Home page link. In case a lender does not exist on the list, then the required minimum criteria is unmet hence no application is allowed.
  2. Firms that are unregistered – In this case, the firm first needs to be registered. They will then be required to answer some pre-qualification quizzes that determine the lenders they are allowed to apply. It is then required to choose a preferred lender from the list of many then they are to be supplied with credentials so that they log in and get done registering. When a lender does not appear on the list, it means that they are not accepted to apply.

All applications are not guaranteed. In fact, sometimes lenders need mortgage applications to have commenced before they can review the application.

Reasons to Sign Up for Lender Exchange

The scheme intends to help reduce overheads on panel firms by offering a solution that allows for the provision and validation of information in one reliable central place. This guarantees reduced risks to lenders who would otherwise have to introduce independent panel charges to recover from the increasing cost of administering private panels.

This would translate to an unnecessary but significant burden for organizations, making it a costly affair. When the system is adopted by lenders, lenders and law firms end up being the major beneficiaries since the use of a centralized point of information for easy collection. This prevents the need for firms to regularly provide similar information to multiple lenders repeatedly.

Additionally, lenders and law firms can easily communicate through a provided mailbox. This direct contact makes it possible for them to save time and effort that would go into tracking down the right person to respond to every query regarding panel membership and panel applications.

In a nutshell, Lender Exchange offers the following gains:

  • Reduced administration, which means that more lenders can access relevant information firsthand. Lenders also get to learn about the latest information on property purchases and sales.
  •  Simplified fee structure. The solution is cost-effective because the system is under one roof.
  • Continuous customer choice. Panel sizes can be maintained because extra legal fees are minimized significantly.
  • Improved communication. Information exchange has been simplified, making it quick and easy to access relevant information.
  • Ability to access current information. Members have a choice to change their standard mortgage documents without having to worry about the legal issues.

Lender exchange remains to be a system that has more benefits than downsides. While many people may not have joined it for one reason or another, those that have to continue to thrive and enjoy the gains that come with it.

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