on 28-09-2017 01:47 PM
I am keen to see if others have experienced the problem of brokers become aggressive advocates for the banks, rather than pursuing the interests of the borrower. See this article in which I explain the problem:
on 09-10-2017 09:17 AM
My experience with most brokers is that once the loan documentation has been signed they are as useless as perfumery to a hog. No clue.
on 09-10-2017 09:35 AM
Indeed Luiza. Brokers have developed the mindset of estate agents insofar as they now see lawyers as a free ride. Once the customer has indicated that they are represented, the broker (like the estate agent) is able to tell the customer, "Don't worry, your conveyancer will look after this, and we'll make sure that they do." This has become a major risk management issue for lawyers and conveyancers.
Unfortunately, too many lawyers and conveyancers are prepared to pander to the banks and brokers by accepting responsibility for non-conveyancing matters, and this impacts upon all of us. The classic is the situation where the bank refuses to accept a settlement booking unless and until the conveyancer has arranged for the submission of a Discharge Authority. Why would any lawyers or conveyancer accept responsibility for a bank's Discharge Authority?
Peter Mericka Lawyers Conveyancing
on 09-10-2017 10:28 AM
I rarely submit a discharge authority to the bank. I usually ask clients to take care of it themselves. You're right, we don't need extra responsibility and liability.
Re brokers - partially it is their laziness that is annoying, but they also seem to be badly educated as to the conveyancing process. They don't understand terminology and are often confused what steps must be taken to complete settlement...
on 09-10-2017 11:46 AM
We have found that the best way to deal with banks and brokers is to tell them, and our clients, that we cannot provide documents to third parties for reasons of privacy and cyber-security, and that the bank or broker must obtain these documents direct from the borrower. We also provide access to a specific folder in our Secure Document Exchange (SDX) portal, so that the client can download documents and can also give the bank/broker access. The portal maintains an audit trail of access and downloads.
Now, if a broker or bank pretends that a documents has not been provided they must answer to the borrower. They can no longer tell the borrower that documents requested from us were never received.
See the sparks fly when a bank/broker attempts to claim that documents (e.g. the Settlement Statement) was not provided, when the customer did this some weeks earlier, or the SDX portal log shows that the broker had accessed the Bank Documents folder and downloaded them!
It's all about ensuring that responsibilities remain with the party best placed to bear it, and refusing to accept responsibility for matters outside of our retainer.
Peter Mericka Lawyers Conveyancing
on 26-06-2019 04:59 PM
As a broker I have landed on this thread whilst looking for how Brokers can access PEXA notes. We often receive information from Banks passing blame to the other financial institution (particular in event of refinance). Not having access to PEXA notes makes it difficult to ascertain where the settlement is actually placed, also means we need to call/email relevant parties to obtain information. I've had several calls today for a straight forward refinance booking and with repeat hold time. Having access to PEXA notes would have meant I could resolved this issue on first phone call - better outcome for all involved.
*post written whilst on hold
on 26-06-2019 05:17 PM
Actually @jasonbutcher , my preference is not to have to deal with banks or brokers at all, and I am in the process of putting together a protocol that requires banks and brokers to deal exclusively through their borrower and the PEXA workspace.
This will mean that if a bank asks a broker for a copy of the Contract of Sale, the broker will obtain it from the borrower (without bothering me).
If the client wants me to perform some task for the benefit of her bank or broker, she can request me to do it, but at the same time she will be made aware of the additional cost I will charge her (which she can then pass on to her bank or broker if appropriate).
This approach will ensure that each party looks after its own responsibilities, there is no misinformation, and costs generated are paid by the party who generates them.
I have already run this past a law firm that acts for mortgagees, and I am pleased to report that they have no problems with it at all.
In response to your specific comment, I think that rather than brokers having access to the PEXA workspace, it would be better if they had improved access the mortgagee's PEXA team.