FINANCIAL INSTITUTION AND MORTGAGE PROCESSOR READINESS 

During NECS implementation, financial institutions and independent mortgage processors will ready themselves for the new electronic system.

Those using proprietary loan and mortgage documentation systems will rely on their suppliers to enhance their products to integrate NECS and make it accessible via web services, as well as provide appropriate training and support. Institutions using in-house developed systems will do this work themselves.  In both instances, systems modifications, testing and commissioning will be assisted by NECS through adequate lead-time and the provision of a web services testing and accreditation facility.

Before a financial institution or mortgage processor can use NECS to complete its first transaction, it will be required to successfully apply to become a registered NECS subscriber, register one or more users and appoint a registered certifier.  Applications will be available both online and manually. Online applications will require the pre-purchase of a compliant Digital Signature Certificate and commitment to NECS’ Participation Rules.

In addition, financial institutions will develop and publish procedures for their customers to commit private funds into settlements and to receive cleared funds from settlements.  Financial institutions who are Exchange Settlement Account (ESA) holders at the Reserve Bank also will develop procedures for the authorisation of cleared funds for settlements, choosing to either integrate this function with an in-house mortgage processing operation or run it separately from a Treasury area

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