100 points for mortgage registration

[Burramys]

I'm towards the end of arranging refinancing and today was advised by my broker that 100 points of identity are required. It seems that the Victorian Titles Office recently had a chnage of legislation, regulation or policy requiring 100 points. Odd. I am alrerady registred with the Titles Office for the current mortgage. Same IP, and my residential address has not changed. Last week the bank accepted a significant amount into the offset, so the new mortgage account will be okay, I hope. There are many websites explaining 100 points, but they all vary slightly, notably that the 70 point item is or is not mandatory.

Does anyone know about 100 points being required in the above circumstances, and if so, could a link please be posted? TIA.

 

[Marty McDonald]

That is correct it is called VOI (verification of identity) and it is a pain in the **** being introduced across the country. Even existing customers making a change to their loans for example will technically have to be re-identified.

I am not sure there is a set list of documents required as every lender seems to adopt a slightly different interpretation. Just to make life difficult Westpac for example have one set of documents standards to identify you under their current AML guidelines but the NSW VOI requirements are different again. So in some circumstances you may have to be identified twice for one transaction. Yep thanks for the extra red tape governments.

 

[Burramys]

Marty, thanks. I can see where they are coming from, AML and all that, but this is insane. There should be just one standard universally applied, and when there is sufficient evidence from multiple sources about a person with a long history, then identity should be proven. I've given something like 230 points of ID, plus the mortgage is going from my name to my name.

See http://www.dtpli.vic.gov.au/__data/assets/pdf_file/0014/260240/CustomerInfoBulletin_ed145.pdf

The relevant part of the Transfer of Land Act 1958 is s 87A, Mortgagee to verify identity of mortgagor for execution of mortgage or variation of mortgage:
(1) At the time of execution of a mortgage or a variation of mortgage, a mortgagee must take reasonable steps to verify the authority and identity of a mortgagor to ensure that the person executing the mortgage, or on whose behalf the mortgage is executed, as mortgagor is the same person who is, or is to become, the registered proprietor of the land that is security for the payment of the debt to which the mortgage relates.

(2) For the purposes of subsection (1), the mortgagee is considered to have taken reasonable steps to verify the authority and identity of the mortgagor if the mortgagee has taken steps consistent with any verification of identity and authority requirements?
(a) determined by the Registrar in accordance with section 106A; or
(b) set out in the participation rules (within the meaning of the Electronic Conveyancing National Law (Victoria)).

In my view, having all the identifications proved as I have done satisfies s. 87A (1). I've had this before when a bank incorrectly applied AML/TCF. I challenged the mongrel bank and won. The aforesaid MB did not agree that I had won, but smothered me in bank-babble and then let me open the account, no more ID proving necessary.

 

[Terry_w]

In my view, having all the identifications proved as I have done satisfies s. 87A (1). I've had this before when a bank incorrectly applied AML/TCF. .

The act says the mortgagee must take reasonable steps to identify... Having already identified someone is a reasonable set in my opinion.

 

[Burramys]

The act says the mortgagee must take reasonable steps to identify... Having already identified someone is a reasonable set in my opinion.

Terry, can you please advise if in your view s. 87A (1) has been satisfied in my circumstances?

 

[Terry_w]

Terry, can you please advise if in your view s. 87A (1) has been satisfied in my circumstances?

I have no idea, but

(1) At the time of execution of a mortgage or a variation of mortgage, a mortgagee must take reasonable steps to verify the authority and identity of a mortgagor to ensure that the person executing the mortgage, or on whose behalf the mortgage is executed, as mortgagor is the same person who is, or is to become, the registered proprietor of the land that is security for the payment of the debt to which the mortgage relates.

If you have already been identified adequately at the time of execution of the mortgage then it would appear so. But that doesn't mean that a mortgagor isn't entitled to take a few more reasonable steps.

 

[RPI]

See the other post on VOI.

All due to PEXA - Property Exchange Australia. Electronic conveyancing which has started in NSW and VIC and starts in QLD in 13 days time.

You will need to have VOI done every 2 years. You can go to AUSPOST and pay $39 per person and get it done. You should get a VOI number that your lender and solicitor can use. The lender/solicitor may still require you to produce ID as we are now required to sign off that we have VOI'd you.

Note that the one i have had to do is worse than 100 points, must have passport or full birth certificate as well.

We haven't started this yet so still working out our processes, not sure if clients will need the same docs as I did.

 

[Paul@PFI]

The ATO/Treasury and Crime Agencies want all real property contracts to address proven identity to give uniformity. Anti fraud measure for lenders and land owners too. Flows through + AML (anti money laundering) All parties to the chain plus third parties need to be satisfied as to identity. And ATO will gather the data You can see where this is going....Started with banks, then financial investments not hard assets.

Foreign buyers, fake names, unknown names, fake company names, and illegal laundering have all come to attention of Crime Commission and agencies. Large sale foreign buyer tax avoidance also suspected but anecdotal. In one criminal case property was transferred as a way for a developer to pay and remit proceeds for drug sales....No cash. Real estate. Everyone assumed real people would own property. Seems not all.