NSW Land Registry Services has launched a new mortgage title verification service, allowing lenders to accurately reconcile their home loan portfolio against the NSW land titles register.
According to NSW Land Registry Services, the operating body over the NSW land titles register, over 230,000 new mortgages were placed on the NSW land titles register in 2019, with 20 per cent of these relating to refinancing on an existing property, and 80 per cent reflecting an ownership transfer.
With this in mind, the new mortgage title verification service has been rolled out to enable lenders to directly compare their home loan portfolio information with the information provided to the NSW land titles register.
Prior to the introduction of the new service, mortgage providers were required to reconcile their mortgage records against the land titles register manually, in a time-consuming process that was prone to human error, according to NSW Land Registry Services.
In addition to saving time, the new service aims to assist mortgage lenders in ensuring compliance with regulatory requirements, identify and correct errors on their own records, and ascertain if and when changes to their registered mortgages occur.
According to NSW Land Registry Services, the mortgage title verification service specifically targets requirements for “unequivocal enforcement rights” over mortgaged property and helps a lender determine whether that financial exposure is secured by a registered mortgage.
The new single-source service allows for unregistered or discharged mortgages, which remain on the land titles register, to be identified and addressed, reportedly improving outcomes for both lenders and their customers.
The CEO of NSW Land Registry Services, Adam Bennett, said: “The mortgage title verification service reflects our strong focus on understanding and meeting the needs of businesses, mortgage customers and stakeholders – who depend on the quality and security of our records – while improving our services, efficiency and accessibility.
“We have invested substantially in our people and systems to enhance the quality of our core registry operations while facilitating the adoption of electronic conveyancing and developing innovative new services.”
He added: “Mortgage title verification offers financial institutions efficiencies in accessing data and greater assurance for their customers that data is accurately recorded across systems.
“We value and appreciate the vital role we play in the property sector which is a major part of the economy and on which the whole community depends.
“We take that role seriously, operating with the utmost diligence and integrity in everything we do,” Mr Bennett concluded.