NICTA and the private sector Lending Industry XML Initiative (LIXI) has launched a set of protocols they say could see the valuation stage of a home loan application reduce from two days to just two hours.
For the past five years, the not-for-profit LIXI group has worked to develop ecommerce standards for online processing and administering home loan information using a Credit Application Language (CAL).
LIXI’s collaboration with NICTA has aimed to improve interoperability through ecommerce standards for business processes by incorporating CAL and web service technologies.
LIXI chief executive Socrates Vasiliadis, CEO, LIXI, valuation is an area where the industry was expressing confusion and it was a relatively self-contained problem that a set of standards could address.
“The industry confusion stemmed from a lack of formally documented, standard processes where similar software was written for the same problem,” Mr Vasiliadis said.
“Not only will this development reduce technology costs for the valuer community, it will also offer improved efficiency and better relationships with lenders.”
The collaboration, called the Business Process Working Group, includes representatives of NICTA and LIXI, which incorporates all the major participants in the Australian lending industry.
NICTA Empirical Software Engineering (ESE) program executive Paul Mackie said having the standard vocabulary is not sufficient to guarantee ebusiness interoperability between so many participants in the industry.
“The goal is for all parties to be able to communicate easily with each other, and have the means to evolve without re-engineering interfaces for each new participant they do business with,” Mr Mackie said.
“To get to that point the industry needs a reference architecture and the standard guidelines on how to implement the technology,” he said.
Plans are underway for NICTA and LIXI to prepare reference architectures for other lending processes, such as the circulation of loan product information from lenders to the many thousands of mortgage brokers in the industry.
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