When acting for an ADI (Authorised Deposit taking Institution), what physical proof do we have that the Mortgagor has signed the mortgage as we have no authority from the mortgagor as such. Do we get the Mortgagor to sign a National Mortgage in paper form with the memorandum? If we are also acting for the Mortgagor it is not a problem but not otherwise. If we go to a Court situation how do we prove the Mortgagor signed the National Mortgage and accepted the Memorandum of conditions?
As a Subscriber acting for an ADI you are required to complete certifications any time a registry instrument or document is digitally signed. This is the case whether you use the National Mortgage form or the old mortgage form. Either way, you would need to ascertain which form has been used.
Certifications for electronic transactions are set out in Schedule 3 of the Participation Rules.
For a self-represented Mortgagee the certifications required are 3, 4 and 5 (and 6 for WA) as set out in schedule 3 and for a Subscriber representing mortgagee the certifications required are 1, 2, 3, 4 and 5 (and 6 for WA). The certification is given when you act for the mortgagee and does not anticipate or require that you act for the mortgagor.
For a Mortgagee, the Certifier must be reasonably satisfied that the mortgagee it represents:
(a) has taken reasonable steps to verify the identity of the mortgagor; and
(b) holds a mortgage granted by the mortgagor on the same terms as this Registry Instrument or Document.