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Explains the tracker....Westpac first cab off the rank.......Bob Joss CEO........
Mortgage Banking Australia Style
http://www.housingfinance.org/uploads/Publicationsmanager/9906_Aus.pdf
Page 3
.....there are several Australian-specific features that are unique in the international market. Many of these features would pose a challenge to normal securitisation criteria.....Redraw........Top Up........Portability.......Interest Offset........Product Switching..........Apportioned interest........Break charges..........Payment holidays.......Multi Borrowers.......Multi Securities (Collateral)............Combination Loans.......Securitisation and the UCCC................
Page 5
.....Westpac viewed compliance with UCCC as a competitive advantage. It was questionable whether other Australian lending institutions would meet the deadline.......
Pages 7-8
.....Westpac developed a unique compensation program heavily weighted to learning. In addition to to industry equivalent wages and benefits, each employee was given certain standards of performance that when achieved provided them with a certification of compliance and financial reward...........
Home loan origination process changes
Instead of the customers looking at the various products and features, his or her loan requirements are
entered into the computer system. The system searches all available products and provides a list that
meets the customers efforts and application data. The application data is entered and the loan
information is electronically uploaded to the Mortgage Processing Centre (MPC) computer system where
an automated credit scoring application approves the loan subject to income verification valuation and
mortgage insurance requirements.........the loan officers duties changed dramatically as they were
NOLONGER RESPONSIBLE for the administrative aspects of the loan after the application was submitted
to the MPC.
The new origination system incorporated a status-tracking feature to keep the loan officer aware of
his customer’s loan status as it progresses to settlement. If the loan fails the credit score, the loan officer
is notified electronically and would work with the customer to change loan characteristics or with the
credit staff at the MPC for exception processing.Service levels were established for each phase of the loan
process that provided workflow delegation.
MPC organizational structure......the end-to-end process resembled an assembly line with two specific subsets.....Settlement............Servicing workflow models were developed to track and project volumes............each team was responsible for a loan from start to finish .they were also trained to promote cross-selling...........the structure was amended to deal with product and process variations to gradually support securitisation standards during the evolutionary process.......
Securitization........securitization of mortgages was a primary strategy of the Mortgage Project. In 1994 the securitization of Australian mortgage loans was not widespread.....the time constraints of phase1 did not allow the full development of the securitization capabilities.......further system development would be incorporated later..............Phase 2 Mortgage Project Plus Initiatives....
Pages 9-10
Conversion of the pre-UCCC mortgage portfolio......
Enhance point of sale technology
Change product design strategy
Introduction of third-party services within Australia......Westpac began its attempts to market the processing and servicing capabilities to other lenders........
In early 1997 a letter of intent was in place with FAI Home Loans (FAI)...the contract between Westpac and FAI was signed in December 1997..........followed by a joint venture with CBA in which CBA outsourced all technology functions, including mortgages, to EDS
Some perspective, please: Gail Kelly was not Superwoman
Michael Pascoe
13 November 2014
Just who owns Australia's Westpac?
http://www.gwb.com.au/gwb/news/banking/wpac97.html