Financial Institution guidelines when reverting to paper settlement (Discharge of Mortgage)
It would be appreciated if the financial institutions could provide guidelines of what to do when a Discharge of Mortgage workspace is abandoned and reverts to a paper settlement.
We recently activated a DofM and invited Westpac to join the PEXA workspace. The DoM authority had been uploaded within the workspace. Westpac accepted the workspace, and the history shows that they received the DoM and were actively transacting including preparing the CoRD and DoM. Unfortunately, the Purchasers had to withdraw from the workspace as a linked settlement was not able to be transacted via PEXA. We withdrew from the workspace and sent a message to Westpac advising that the matter had to revert to paper.
When we phoned Westpac a week later to book the manual settlement we were advised that there was nothing in their system to indicate a DofM had been activated. We had to submit the DofM form again manually and start the whole process from scratch without any reduction in processing times. Settlement is due in 2 days and we are still trying to book settlement.
We have since learned from Westpac that the PEXA discharge team and the manual discharge team do not communicate. Once the PEXA settlement falls through that's it. Ignorantly, we had just assumed once a DofM had been activated with the bank then it would be in their system and it would be passed to the alternative processing team. We are uncertain of the other bank's procedures, however, can only assume that it may be similar, in which case we find ourselves in a difficult position if PEXA workspaces are abandoned only days prior to settlement.
An idea would be for an auto-generated email to be sent to the practitioner by the Discharging Mortgagee when a workspace is abandoned advising of the next-step procedures. The email could simply notify whether the file has now been passed to the manual processing team and the practitioner may phone in x amount of days to book settlement, or advise if the practitioner needs to start the process again and please immediately phone x or email x department asap.
Re: Financial Institution guidelines when reverting to paper settlement (Discharge of Mortgage)
I am a representative for St George (BofM & Bank of SA) that comes under the Westpac group that over sees opportunity to improve customer outcomes and use of PEXA
I apologise for the experience that you have had and would like to understand where the break down had occurred as we do have processes in place so that if settlements are to revert to paper we redirect to the appropriate area.
Could you please PM me with your customer details (and workspace etc) and between my WBC colleagues and myself we will look at closing out how this happened and also ensure the customer is not impacted.
We have recently updated our Transfer Checklist that may also assist with other general information on how we action our requests.