COVID-19 | Verification of identity – the need to go digital

All of the states (but not the territories) require mortgagees to undertake reasonable steps to verify the identities of mortgagors, commonly through a framework called the “Verification of Identity Standard” (VOI Standard) undertaken by specialised “Identity Agents” e.g. lawyers or other agents with professional indemnity insurance. Where they do not, and the mortgage instrument is […]

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Responsible lending – updated guidance and practical considerations

Lenders’ responsible lending obligations have been a fluid topic in the wake of the Hayne Royal Commission’s final report in February 2019. In that report, Commissioner Hayne said that he was ultimately not persuaded that the National Consumer Credit Protection Act 2009 (Cth) (NCCP) needed to change in that aspect. His view was that the […]

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Mortgagees and verifying mortgagors’ identities – a time of change

On 18 December 2019, the Australian Registrars National Electronic Conveyancing Council (ARNECC) released a consultation draft of version 6 of its Model Participation Rules. It pertains to Mortgagees’ “Verification of Identity” (VOI Draft) requirements when registering mortgage securities, which are separate to AML / CTF KYC requirements. The VOI Draft – which contains one very […]

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Mortgage Brokers – You could be up for $1.05M in fines from 1 July 2020

On 6 February 2020, the Financial Sector Reform (Hayne Royal Commission Response – Protecting Consumers (2019 Measures) Bill 2019 (Bill) passed in Parliament. The Bill gives effect to recommendations 4.7 and 4.2 of the Hayne Royal Commission by amending the National Consumer Credit Protection Act 2009 (Cth) (NCCP) and the National Consumer Credit Protection (Transitional […]

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Considerations for an early release of superannuation request

Quite often a lender will receive a request from their customer to support an early release of superannuation to assist with mortgage repayments and pay outstanding arrears in situations where the lender has commenced enforcement action for possession of the mortgaged property. Click here for full size image.               […]

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Gadens: PEXA leader among Australian law firms

The Gadens Brisbane Banking and Finance Group is a well-established team with significant experience in PEXA and the electronic conveyancing network. Gadens, with its already proven banking track record, has added a further string to their bow by becoming one of the leading transacting law practices on PEXA in Queensland with over 18,630 completed PEXA transactions, including over […]

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PEXA Alert: NSW CoRD Consents and Paper Transactions

This is a PEXA alert for practitioners and financial institutions that are taking security over real estate in NSW. Due to the mass conversion of titles in NSW from paper certificate of titles (pCT) to electronic certificate of titles (eCT), an issue has arisen regarding the appropriate authority to deal with the title. When a […]

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PEXA Update: Where are we up to?

Whilst PEXA and the Electronic Lodgement Network (ELN) are already transacting in the 5 major States (VIC, NSW, QLD, SA and WA), both the requirements for practitioners and financial institutions, and the targeted mandate dates vary from State to State. Further, practitioners and financial institutions need to be aware when the respective land titles offices […]

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Lenders can be liable for FHOG refunds

Recent amendments to the First Home Owner Grant Act 2000 (Vic) (FHOG Act) will enable the State Revenue Office (SRO) to recover first home owner grant  (FHOG) payments from third parties such as lenders.  This means that where homeowners have received a grant payment that they were ineligible for, or that they have subsequently become […]

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