Lextech shifts focus to core services, drops ELNO application

Lextech has announced its withdrawal from the process of becoming an approved Electronic Lodgment Network Operator (ELNO) in Australia.

The decision to end its pursuit of ELNO accreditation comes after the appointment of a new leadership team, including Peter Maloney as Chief Executive Officer. The company plans to redirect its focus towards its core mortgage origination and settlement services, which are currently utilised by more than one third of lenders in Australia.

Peter Maloney, Lextech CEO, explained the rationale behind the decision, stating the company would cease its efforts to become an ELNO and would instead build upon its primary offerings. "Lextech is ending its' pursuit of becoming an approved Electronic Lodgment Network Operator (ELNO), instead focusing on its' core business and advancing its market leading mortgage origination platform and settlement services, which are currently trusted by over one-third of Australia's lenders," Maloney said.

Maloney, who has previously served as CEO for technology businesses GlobalX and Dye & Durham Australia, detailed that the primary reason for Lextech's withdrawal was feedback from market participants across the property sector. He said, "There has never been broad-based appetite or support for a 2nd ELNO; neither banks nor the legal and conveyancing industry have collective support for it."

He further commented on industry dynamics and the regulatory environment: "While some politicians, government agencies and property professionals might demand competition as a blanket rule, the economic viability of a 2nd ELNO simply does not stack up. From a security, platform and pricing perspective PEXA is already highly regulated and performs its tasks with remarkable efficiency and reliability."

Lextech's leadership team has committed to ongoing investment in the company's mortgage origination platform, including enhanced automation features and continued integration with electronic conveyancing solutions from providers such as PEXA.

Maloney said, "Lenders, mortgage brokers and borrowers will best benefit from Lextech sticking to its' core business and continuing to invest in the platform, offering new efficiency gains and further certainty for property transactions by facilitating real-time data exchange, seamless communication and automation."

He added, "We have a significant responsibility to Australian property buyers and sellers, and we are committed to investing in our platform and people to ensure we continue to offer lenders, brokers and borrowers' certainty when it comes to loan origination and property settlements. We will continue to invest in our platform designed for lenders to make mortgage origination to settlement easier and more transparent for lenders, mortgage brokers, borrowers and their legal representatives."

With 28 years of experience in the industry, Lextech has stated it remains committed to setting standards in service and efficiency for mortgage processing and property settlements in Australia. The company's current focus is on expanding and refining its products to support the country's residential property market, estimated to be worth AUD $11 trillion.

An Electronic Lodgment Network Operator provides electronic platforms for participants and their representatives to prepare registry instruments, settle funds, and lodge documents with state and territory land registries, facilitating electronic conveyancing transactions. ELNOs are subject to approval by the registrar in each Australian jurisdiction.