Lextech exits ELNO race

Lextech, one of Australia’s leading mortgage origination and settlement platforms, has announced it is withdrawing its application to be an Electronic Lodgement Network Operator (ELNO), following the appointment of a new leadership team including new CEO Peter Maloney.

Lextech CEO Peter Maloney said “Lextech is ending its pursuit of becoming an approved 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.”

This leaves Sympli as the only competitor to the dominant provider PEXA in the domain of e-conveyancing.

Maloney, who was previously the CEO of property and legal technology business GlobalX and Dye & Durham Australia said Lextech’s decision to withdraw from becoming an ELNO is firstly based on listening to market participants across the property ecosystem. 

“There has never been broad-based appetite or support for a second ELNO; neither banks nor the legal and conveyancing industry have collective support for it,” Maloney said.

“While some politicians, government agencies and property professionals might demand competition as a blanket rule, the economic viability of a second 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.”

Under the new leadership team Lextech will continue to invest in the development of its end-to-end mortgage origination platform, with value-added services and automations, including those offered by electronic conveyancing provider PEXA. 

“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” Maloney said.