on 12-10-2017 10:19 AM
Having set up my first Mortgage Pexa Workspace, I was very disappointed to learn that the PEXA source account is not available for use by a private incoming mortgagee to deposit their loan funds in readiness for the financial settlement.
Not all mortgages are by Financial Institutions. There are private client mortgages (and refinances) which need a financial settlement as well as registration and of course would prefer to transact these in PEXA.
In view of the deadline next year for electronic transaction of refinances, what is PEXA doing to make the Source Account available so that private mortgagee clients can deposit loan funds in the Source Account in readiness for a refinance or mortgage settlement?
on 13-10-2017 05:57 PM
Pauline - I was about to enquire myself with PEXA about using PEXA Source account for private incoming mortgagees, given that trust accounting rules in Victoria provides that loan proceeds are not considered 'trust' funds and therefore cannot be held in our firm's trust account for the purposes of attending to any PEXA refinance or mortgage transaction involving a private lender.
I was intending on using PEXA Source account, but if that cannot be used for private lenders, how are private lenders supposed to participate in PEXA transactions with a financial settlement?
For the moment, I can do all transactions by paper, but what happens when all transactions must be electronic?
on 16-10-2017 10:28 AM
We've started looking at updating the PEXA source account to allow you to provide funds into a PEXA settlement for roles other than the Incoming Proprietor.
This will then allow you to provide source funds where you're representing a private mortgage in the role of Incoming Mortgagee.
The account will also be expanded to also allow you to provide source funds when the Proprietor on Title requires additional funds to discharge their mortgage.
We'll keep you posted on when we get this scheduled into a release.