Lexsure is the only company offering a full service of a lender compliance audit for law firms.
Our comprehensive database of UKF Handbook instructions gives us the ability to review law firms’ conveyancing case files retrospectively and in the same manner a lender or insurer would.
Our expert assessors objectively assess using propriety templates and Lender Handbook archives whether each transaction was in line your lender requirements at the time the Certificate of Title completed.
Our standard package for law firms costs £975+VAT. We will audit 10 case files, which we can stratify by tenure (e.g. leasehold), lender, year of completion or any other variable that suits you.
At the end of the audit, we will present you with a full written compliance profile for the firm and a baselined risk profile. We will also meet with you to present our expert findings and recommendations in a formal debrief.
- Why would my firm consider a lender compliance audit?
- Lexsure often meets conveyancers and even COLPs who are confident that their firms have ‘bulletproof’ compliance protocols. Yet Lexsure sees common breaches of the Handbook. In fact, we have yet to complete a single audit that didn’t uncover any breaches. An adverse externally-commissioned audit by a lender could result in an insurance claim or removal from a panel. Breaches of Handbook also leave you open to costly and damaging suit if the lender suffers a loss and even regulatory action by the SRA . Compliance audits are the only way to ensure there aren’t costly skeletons in your conveyancing cupboard.
- Are lender audits common?
- Increasingly. Even with repossessions at a low rate lenders are on the move with file inspections are already on the increase.lenders and PI insurers complain that non-compliance is still all too frequent, even in reputable firms. With pressure on interest rates and an uncertain financial climate due to Brexit, we recommend ensuring your compliance before repossessions rise and even more file audits are commissioned by lenders and insurers.
- What happens if/when you uncover breaches?
This is a common question. When Lexsure finds breaches, they are often easily categorised. We can not undo what has been done but we can help you adjust problematic parts of your risk prevention protocols and checklists. And we can advise on tools to help avoid recurrences.
Unless commissioned to conduct an external audit, Lexsure has no duty to report breaches and we will ensure the results of your audit are completely confidential.
- I am told that if I book a compliance audit via Searches UK I can have the audit for free. Is that right?
- It depends if Is your firm a Searches UK customer and whether the offer is still on the table. You will need to check with them directly. Contact 0800 043 1815 or email them at firstname.lastname@example.org
- I spoke with local firm who had requested an audit but was told by Lexsure that this was not possible due to a conflict. Why would this be the case?
- Before agreeing to audit a firm we need to complete a conflict check to ensure that your firm has not already been listed in the next 9 months of scheduled lender or insurance audits. If your firm is already scheduled to have an audit by a third party then we will have to decline the request from the firm’s COLP to conduct an audit.
- How does lexsure comply with data protection issues and client confidentiality?
Lexsure are acutely aware of the data protection issues. Lexsure have been registered with the ICO since 2011. Any data is destroyed following the report being issued. We are happy to give direct assurances in this regard.
We would also point out :
- Many firms are Lexcel accredited and therefore the same issues apply in relation to any external auditor. Most firm's terms and conditions allow the firm to have client's file reviewed for external auditing.
- Where the firm (as opposed to the lender or insurer) has invited Lexsure in, the firm can ask us to make all notes in writing and hand the notes in before leaving. Lexsure can still conduct a meeting with the COLP and head of department but if the firm does not want Lexsure to take notes out of the office it simply means that Lexsure can’t issue the formal written report post audit.