Welcome to the fifth edition of the Bank Blog. This month I’ll be discussing the Transfer Guidelines, current banking campaigns as well as PEXA and industry news.
Utilising the conversation tool is key and I’d like to provide some insight on how the network is tracking in this space. The chart below covers the month of October and highlights performance in the roles of Incoming Proprietor for practitioners and Incoming Mortgagee for the banks.
As per Guideline 18a, the Mortgagee on Title should submit the final payout figure no later than 10am on settlement day. I’m pleased to share that this is being adhered to in over 80% of Workspaces presently, with the goal to drive towards 100%.
The major banks recently participated in a “spring clean”, aiming to drive further adherence to three key Guideline areas we often get feedback on:
Using the tick box to tell practitioners when you’ve received loan documents
Entering the loan payout figure by 10am on the day of settlement
Confirming the loan proceeds by 10am on the day of settlement
The financial institutions recognise the impact of Guideline adherence to the practitioner and homebuyer/seller and it’s fantastic to see the commitment to improving the settlement experience for all.
In a positive change being rolled out in PEXA’s Release 9, settlement rollover time is being reduced from 90 minutes to 30 minutes. This will drive a faster settlement turnaround and reduce waiting times.
Further, I’d like to discuss a recent post on Community, which asked why banks may be reluctant to settle prior to 2pm. As noted in the thread, some lenders outsource their work and to ensure settlement funds are cleared into their account from their lender for settlement a later settlement is preferred. We understand this can be frustrating and we are continuously working with the banks to help improve settlement processes.In some of the tools we are providing to the large volume transactors, we can see that the bulk of settlements are booked with banks at 2pm, and when we look at the 2.30pm slot there are very few bookings.
The banks are now working hard to prepare for Western Australia’s 1 December milestone and industry collaboration will ensure a smooth transition for all. I recommend you make use of the resources available to help you prepare. We’ve published an eligible documents guide, are holding transfer tutorial webinarsand host additional help material on Community.
If you have questions or topics you’d like discussed or feedback you’d like to share, please comment below – and keep an eye out for the next Bank Blog.