The Australian Registrars National Electronic Conveyancing Council (ARNECC) has recently proposed major changes to Verification of Identity (VOI) procedures for signing mortgages. One of the draft clauses requires that VOI must be conducted on each mortgagor on the transfer of mortgage.
This has the potential to have an adverse effect on the securitisation industry as it would make the bulk transfer of securitised mortgages/ mortgage books extremely difficult and may in turn require restructuring of standard securitisation documentation.
It is unclear why this change is proposed and its impact on securitised transactions may be unintended. Nevertheless, the ASF believes that it will be beneficial to make a short submission to ARNECC to oppose this change. The ASF would appreciate receiving any comments or feedback from its members on the draft Model Participation Rules (notably proposed new clause 6.5.1(b)(ii)). Submissions to ARNECC must be made by Monday 2 March.