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VALUERS REDUCE PROCESSING TIMES & IMPROVE SERVICE AS RESIDENTIAL LOANS SECTOR EMBRACES ECOMMERCE STANDARDS 30 August 2005 Property valuers can reduce their processing and turnaround times by 50 percent as a result of the introduction of ecommerce standards in the residential lending industry by not-for-profit LIXI (the Lending Industry XML Initiative). LIXI developed Credit Application Language (CAL) to allow home loan information to be standardised and transferred electronically. Prior to CAL’s launch each lender utilised separate, non-compatible systems. Through creating standards, LIXI aims to facilitate the automation of the residential lending industry from application through to settlement. CAL now allows online data to be exchanged by lenders, solicitors, settlement agents, brokers, mortgage insurers and valuers. WBP Property Valuers of Melbourne & Adelaide, has used CAL to develop XpressVal software that is used with state-of-the-art wireless Tablet technology to deliver ‘real-time’ property valuations. “Involvement with LIXI has ensured that the valuation process is prompt, accurate and efficient. We have reduced average turnaround times by 50 percent and can now provide brokers and lenders with some valuations in just a few hours,” says Marika Adams, Valuations Manager, WBP Property Valuers. “Prior to developing XpressVal, there was considerable duplication of work as information was manually transferred”. “Now Valuers take a hand held wireless Tablet PC on their inspections. Valuations are completed using a stylus pen to operate a series of tick and flick options, drop down menus and other one touch features. All information is electronically transferred from the Tablets to a database from which the API approved standard residential valuation format report is generated. “Our valuers can produce and electronically send a full residential valuation report to brokers or lenders literally within minutes of closing the front gate behind them,” says Adams. A research study commissioned by LIXI found that brokers and lenders using CAL compliant systems had halved approval times (from 13.4 to seven days) and processing cost (from an average of $734 per application to just $213). Electronic transactions account for 21 percent of loan applications. LIXI’s research indicates that electronic transaction will grow to 35 percent this year, 55 percent in 2006 and 70 percent in 2007. The study also found that only three percent of the mortgage industry did not think ecommerce would affect their ability to trade. “Applying for a mortgage is amazingly complex involving up to nine organisations. Much of the data required is still exchanged via fax and phone creating a high margin for error,” says Socrates Vasiliadis, Executive Officer, LIXI. “It’s not just brokers and lenders who need to take advantage of faster approval times. Valuers, settlement agents and other mortgage parties are also under pressure to speed up loan processing. LIXI estimates automation will reduce industry costs by more than $10 million per year. Building on its success using Tablet Technology, WBP Property Valuers has become heavily involved in the LIXI Valuations Working Group. It has offered crucial insight and advice so CAL can be further refined. Updated standards will be released in July. CAL has already been adopted by more than 55 LIXI members and a supported by a further 60 associates, including Aussie Mortgage Market, Mortgage Choice, Commonwealth Bank of Australia, ING Bank, Westpac, ANZ, Adelaide Bank, Perpetual, Allette Systems, Lending Technology Services, Mortgage Choice, Pioneer Mortgage Services, PMI Mortgage Insurance, GE, Smartline, Loanmart, Gadens and the Australian Finance Group.
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