VIC eCT Control - when discharging 2nd mortgage -eCT Controller invites being declined

[nicolalambrakis]

I'm seeking assistance with an ongoing matter in VIC, as an FI  discharging a mortgage where there are multiple mortgages listed, we hold eCT control & it needs to be passed to the next MoT.  When attempting to pass control to the 2nd MOT, our invites in PEXA as eCT Controller are being declined by the FI.

How can we prevent this from occurring?  It seems to be an industry wide issue.

Is LUV looking to give eCT control the first MoT automatically?  Are there any other suggestions?

Thank you

[GeorgePolus · Accepted solution]

Hi Nicola,

Apologies - may I please confirm the issue at hand.  Here is what I understand you are asking. 

Your organisation is first mortgagee and holds CT Control.

There are multiple mortgages on title, which rank 2nd, 3rd and perhaps 4th.

One of the lower ranking mortgagees is seeking to Discharge.

In this case, I would expect that the lower ranking mortgagee would invite your organisation into the workspace to Nominate the title to the Discharge of Mortgage.   I would also expect that your organisation would specify to retain CT Control following lodgement of the Discharge dealing. 

While you could Transfer CT Control to lower ranking Mortgagee, I don't see why you would do so.  Your organisation will remain as first mortgagee and so ought retain CT Control.

Alternatively, the above is not the scenario.  

Perhaps your question is related to your organisation as Discharging Mortgagee wishes not to receive the pCT following Discharge and wants to pass CT Control to the (previously second) now first Mortgagee via Discharge of the Mortgage by your organisation.

LUV rules do not allow this.  The VIC Registrar (rightly) requires that both the CT Controller and CT Control recipient actively agree to send and receive CT Control.

So, what can you do?

Upon Discharge, select to retain eCT Control.

Post registration of the Discharge, then, in a second wspace, Transfer CT Control to the (previously second) now first, mortgagee.

The only other alternative is to receive the pCT and physically pass it to the now first mortgagee.

Please let me @GeorgePolus know if I have not understood your question. 

Regards,

George

[nicolalambrakis]

Thank you George, the scenario I'm referring to relates to your second/later response.

When we create the subsequent workspace & invite in the new 1st MoT to transfer CT control to them, they are declining our invite as they can't find a matter relating to that CT reference.

It would be ideal if there was a way the invite could be clearly identified that it is only a transfer of CT control & does not relate to another matter.  The role of CT controller could be for other scenarios such as seeking a nomination so in many circumstances it is declined.

We are of course working with individual FIs directly when this occurs but have received feedback both internally & externally that these workspaces could be more easily identified.  I'm not sure if there are any plans to flag or allow us to note this in the invite.

Thanks again

[GeorgePolus]

Hi Nicola,

My apologies for misunderstanding. 

I now totally understand the issue.   I will raise it with our product teams as an enhancement request.  

Thank you for pointing this out.   It is an excellent suggestion. 

I will let you know a tracking ID once I have it raised. 

Regards,

George

[nicolalambrakis]

Hi George,

Just checking if you were able to raise the enhancement request?

Thank you