Cloud Computing Transforms Property Settlement
Cloud Computing Transforms Paper-Based Property Settlement
A clever Auckland-based, kiwi-founded company has launched an online, secure product enabling New Zealand property settlements through the internet.
The system, - Propel-lc* - enables lenders and lawyers to communicate and move documents between each other securely online. Propel-lc removes settlement hold ups caused by lack of delivery of faxes, or delays with post or courier documents. It provides access to 'live docs' as they are filed securely online, meaning they are received immediately by the recipient party.
First Mortgage Services Ltd has developed and launched the service from June 2010. The first bank to sign up is Kiwibank. Propel-lc is now poised to transform the historic, paper-based way home loan settlements take place in New Zealand.
"This has come about because Land Information New Zealand property registration is online," says Linda Fox, partner in Auckland firm Carson Fox Legal, who is using the system. "First Mortgage Services has timed it just right. Propel-lc is a system that's easy for us to use - so we'll use it. For our Kiwibank customers, it allows us to dispense with faxing or mailing documents. Instead, the whole lending and property purchase registration process can be done online. It improves information to clients, and speeds the process up. It also has the potential for massive savings in paper storage and will ease retrieval of records."
Propel-lc works as a portal, omitting phone calls, faxes and posted documents. All documents can be seen by the lawyer 'as live' online. Once a customer has chosen a bank as lender (in the first instance, Kiwibank) the bank will submit instructions to the customer's lawyer electronically. The lawyer logs on, views, approves and accepts the instructions from the bank.
Once the documents are signed by the client, the lawyer then confirms actions back to the lender - in this case, Kiwibank. At the end of the process, the lawyer attends to the electronic registration of the mortgage against the property via Land Information New Zealand.
"We have switched to using this product," says Helen Hatchard, General Manager of Home Loans for Kiwibank. "It's an easy to use electronic form of a long, previously paper-based process. There is direct action through to the customer's solicitor. It gives us real productivity gains and it's so simple. This fits with Kiwibank's determination to be forward thinking around technology, be more efficient about our processes and ultimately giving a better customer experience."
The idea for the system came from offshore, but First Mortgage Services has developed offshore ideas further. In time, it will allow clients to view their documents online from their home, work or other internet access. If their lender agrees, in future, they may be able to sign online.
"The Government took the lead originally by requiring all mortgages and other land transactions to be registered electronically. Propel-lc is a simple and natural extension that enables lenders and lawyers and their clients to benefit from electronic conveyancing for settlements," says Jonathan Flaws, Director of First Mortgage Services. "Existing communications between lenders and lawyers as they relate to the home loan transaction are often cumbersome, inefficient, difficult to track and can create unnecessary pressures for both parties, including the borrowers. Propel-lc removes these issues."
First Mortgage Services has spent several weeks introducing lawyers to propel-lc. "The response from the lawyers has been very positive," says Mr Flaws. "Importantly they see real benefit in having a single system connecting them to all the mortgage lenders in NZ."
Initially Kiwibank will use the product. Other banks and lenders are showing they are keen to follow.
"We are encouraged by the response to date," says Mr Flaws. "At a modest investment, banks gain significant efficiencies without lengthy, costly development of their own software and system."
"You don't have to be a technowhiz to use it," says Linda Fox. "In a few years, I'd hope this system would be widely used amongst lawyers."
"This makes consumers better off," says Helen Hatchard. "We partnered with First Mortgage Services to pilot this and it has proven to be really exciting. We expect to announce other secure online innovations alongside First Mortgage Services, in the near future, that will also enhance our Home Loan customers' experiences."
ENDS