This article provides an overview of the Settlement checklist in BrokerEngine. It explains each step in the settlement process and shows how BrokerEngine helps keep everything on track from start to finish.
Settlement, the final stage of the home loan process, is the meeting between a home buyer, seller, and lender. During this meeting, the property and funds legally change hands. No home purchase or refinance is finalised until the settlement has been completed.
Contents
Prerequisites
None.
What happens during settlement?
When a deal moves to the Settlement stage, BrokerEngine automatically creates a task for the team to complete the Settlement Checklist.
Once the bank sends a notification that the settlement has been finalised, the broker or administrative staff must complete the Settlement Checklist to verify the information with the bank (e.g. the correct loan amount approved, interest rates, repayment amount, due date, etc.). This step helps ensure that clients receive accurate information.
A workflow email with the Settlement Advice is sent to the broker or client-facing team, which they forward to the client. This advice confirms the loan information and verifies its accuracy.
The lender will inform you of the amount or costs needed before settlement. During the settlement meeting, money is transferred to finalise the home purchase.
Knowing what to expect on settlement can make the process go more smoothly. If you are purchasing a property, the solicitor or conveyancer will organise settlement directly with the lender, according to the settlement date specified in the contract of sale. Whereas, if a client is refinancing an existing home loan, the lender will liaise directly with the other institution to exchange documents.
Locating the Settlement checklist
Our checklists are visible when the deal card is in full view mode. Go to the right-hand menu and click Checklists. A slider displays a list of checklist options. Scroll down the list and locate Settlement Checklist.
Updating the Funding Position in Settlement Mode
Step 1 of the Settlement Checklist is to update the Funding Position in Settlement mode. Funding Positions within BrokerEngine have a Settlement mode, which allows you to confirm that the loan approval issued by the lender matches the data in BrokerEngine.
To update the Funding Position in Settlement mode:
Go to the left-hand menu and click Strategy > Funding Position. (Optionally, click the first line item in the Settlement Checklist.)
Go to the centre window and click the Settlement tab.
Scroll down the centre window, and you'll see a series of fields with checkboxes. Checklist items apply to every split in the Funding Position.
Carefully verify the data for each checkbox and select GREEN (for correct information) or RED (for incorrect information).
Click the Show Account & Repayment Details link to expand the folder and edit details.
If any data is incorrect, update the Funding Position per the lender's approval and note any changes in the Checklist Notes.
Finishing the checklist
After you finish all the checklist items, mark the checklist task Complete. Settlement Advice emails dependent on 1-click workflows are triggered. The deal then moves through to the Post-Settling workflow.
Example of a Settlement Advice Report generated by BrokerEngine
