01-08-2018 10:42 AM - edited 01-08-2018 10:45 AM
Hi, I have just had an incoming mortgagee add a line item to Vendor's Destinations. I assume it is excess loan funds the incoming mortgagee needs to pay to the purchaser which isn't a problem. However in my view the payment should be entered in as a Purchaser Destination and the incoming mortgagee should not be allowed to add line items to the vendor's destinations.
Just after other people's thoughts, I think it needs to be changed.
*just an update, I have moved the destination line item to the purchaser's destinations however I think that any destinations entered by the incoming mortgagee should be automatically entered as a purchaser destination.
on 02-08-2018 04:44 PM
In my memory, we have only added a Destination Line item, as Incoming Mortgagee, once.
It was an experiment, with the knowledge and agreement of our Customer, where we were paying their loan surplus to an account at another OFI.
We had no way of validating the account details.
The amount was only small but the funds went missing at the other OFI for almost a week.
The account number we had, and loaded to PEXA, was one digit short.
The payment arrived at the OFI ok, so from a PEXA perspective it worked.
But at the OFI end it rejected and took a few days to resolve.
To my knowledge we have never tried that again.
In general, we will always handle the loan surplus in house, outside of the PEXA workspace.
I can't see that changing until/unless PEXA interface is able to perform account name & number validation automatically, regardless of the FI, pre-settlement.
on 02-08-2018 05:01 PM
Not quite sure what you mean by Purchasers Destinations and Vendors Destinations. To me it's either Source Funds or Destination Funds.
As a Panel Solicitor for incoming Mortgagees we often add a Third Party Beneficiary line item in the destination funds for the balance/surplus loan proceeds particularly in situations where we need to order the entire loan funds (i.e. settlement figures are not available at the time of ordering funds). For outgoing Mortgagees we often enter our Panel Solicitor fees and/or the Mortgagee/Mortgage Manager fees.
It possibly does become confusing for you . Maybe concentrate on the line items where you are the "owner". I'd be interested on others input.
on 02-08-2018 05:17 PM
Interesting, the destinations tab must be laid out differently depending on whether your acting for a mortgage or a vendor/purchaser. My destinations tab acting for a vendor/purchaser has vendor destinations and purchaser destinations.
I believe all destinations entered by the outgoing mortgagee are automatically entered as a vendor destination, which I agree with. But destinations entered by the incoming mortgagee are also added as a vendor destinations, I believe they should be added as a purchaser destination. I often check that the total vendor destinations equals the amount the vendor is supposed to receive on settlement and having amounts in there that aren't really vendor destinations means I have to pull the calculator out to confirm, which is unnecessary additional work.
My other issue is that because the incoming mortgagee entered a vendor destination after I had already signed off on the financial statement, the financial statement was unsigned and I had to move the destination to the purchaser and re-sign the statement, which is obviously frustrating.
on 02-08-2018 05:37 PM
There's an optional "adjustments and payments" view, which splits line items out as you describe. However, mortgagees will be seeing the destination view which is not grouped into purchaser/vendor line items.
If an incoming mortgagee creates a line item, the system itself might be allocating that into the "vendor" section of your view.