1 necs and mortgage processing a presentation for the mortgage processing summit 2009 by simon...
TRANSCRIPT
1
NECS AND MORTGAGE PROCESSING
A Presentation for the Mortgage Processing Summit 2009
By
Simon LibbisExecutive Director
NOT JUST A COMPUTER SYSTEMA business model Roles, relationships and responsibilities
A legal framework Legislation, rules, compliance and discipline
A risk management regime Allocation, mitigation, transfer and compensation
Supporting business practices Verification, authorisation, certification and justification
A software system Integrated, fully-featured, secure and reliable
Governance arrangements Independent, inclusive, sustainable and competent
Industry, community and government confidence 2
3
Mortgage Process
Instructions are mostly received via email, post and fax meaning we need to re-key data
Duplicated data entry leads to
additional processing time,
increased cost; and
higher risk of errors
4
Mortgage Process
Paper documents are produced and via post/courier to borrowers Associated costs include
– paper– postage – file storage– staff handling
Reworks
Document Preparation
5
Mortgage Process
Heavy reliance on phone calls to obtain / provide status information
Client specific processes reduce productivity – high staff costs
Certification
6
Mortgage Process
Physical settlements involve
Significant staff cost – weekly/monthly workload fluctuations
Production of manual bank cheques
Cost to maintain CBD settlement location
Manual stamping/lodging
Varying processes in each state
High QA costs and potential for errors
Settlement & Securities
7
Mortgage Process
Variations and Discharges
Process are predominantly manual
Little use of data exchange
Post Settlement
POTENTIAL SAVINGS
8
Total Number of Home Loans 733,195
Average Cost $ 1,333(including rework)
Total Annual Cost of $ 977,348,935 X 11% savings ratio
Potential Saving $ 107,508,383
THE CONVEYANCING PROCESS
Financing Disclosure Contract SearchesDocument
PreparationDocument
SigningDocument Stamping
Document Exchange
Financial Settlement
Lodgment Registration Publication
Electronic Conveyancing (NECS)
Electronic Lodgment
Automatic Registration & Publication
9
10
Mortgage Process
Physical settlements involve
Significant staff cost – weekly/monthly workload fluctuations
Production of manual bank cheques
Cost to maintain CBD settlement location
Manual stamping/lodging
Varying processes in each state
High QA costs and potential for errors
Settlement & Securities
BUSINESS PRACTICES
Client Identity Verification
Client Authorisation
Instrument Certification
Confirmation of Right to Deal (the CT issue)
Supporting Evidence Requirements
Fee Invoicing & Payment Collection
11
12
NECS AND MORTGAGE PROCESSING
A Presentation for the Mortgage Processing Summit 2009
By
Simon LibbisExecutive Director