Digital Mortgage Resources At Your Fingertips

July 24th, 2018

Call Details

DMA Webinar – Digital Mortgage Resources At Your Fingertips

July 24th, 2018

Event password: TMCDMA2018

Conference line: 240-454-0879

Meeting number: 667 488 435

*Today’s call will be recorded and made available for future playback.

Agenda

• Introduction to the Digital Mortgage Alliance• How it began

• The DMA website

• Discussion on Digital Mortgage Resources • Fannie Mae

• MERSCORP Holdings

• DocuTech

Panelists

Harry Gardner

EVP of eStrategies

Katie Paolangeli

VPof eCommerce and Industry Initiatives

Shane Hartzler

Director, eMortgage Strategy and Operations

DMA Introduction

A coalition of 22 of TMC’s Preferred Partner companies that have pledged to commit financial &

human resources towards reducing the cost & complexity of technology integrations for TMC’sLender Member companies. The group will also

collectively help educate TMC’s Lender Members on the best path towards a true Digital Mortgage solution for their companies and customers.

DMA Introduction

22 Participating Companies• LOS - LendingQB

• Integration Services – Matchbox & Ignite Integration Solutions, LBA Ware

• POS/Customer Facing – Blend, SimpleNexus, Mortgage Coach

• PPE/Life of Loan Quality Control/Assurance – LoanLogics

• GSE Validation – Fannie Mae & Freddie Mac

• Credit/Verification – Certified Credit Reporting & Credit Plus

• PPE/Hedge Advisory – Compass Analytics & Vice Capital Markets

• eDocuments – Docutech

• eClosing / eNote /eVault – MERSCORP Holdings, Inc., Notarize, Stewart

• Loan Trading – TMCDirect / Resitrader

• Social Media – SocialSurvey

• Accounting – LoanVision

• Subservicing – Dovenmuehle

• Warehouse Lending - People’s United Bank

The DMA Website

www.digitalmortgagealliance.net• What is a “Digital Mortgage”?

• Benefits for Lenders• Benefits for Consumers

• How do DMA members fit into a digital workflow

• Resources• Glossary• FAQ• Members Integrations• Help Desk• Webinars• Whitepaper and Case Study

Coming Soon

Digital Mortgage - Defined

What Exactly IS a “Digital Mortgage”?

• A mortgage process that uses automation to speed the loan process, reduce human effort, and improve borrower communications• Online application• Automated verifications (income, employment, credit, etc.)• Automated underwriting

• Typically centers around a Borrower Portal – a consistent experience for the borrower during the loan process• Some lenders create their own portals• Many use third-party solutions like Blend, Cloudvirga,

BeSmartee, Roostify, and others• Most “Digital Mortgages” today end up as PAPER closings. Digital

Mortgage does NOT necessarily include an eClosing. • This is a big misconception – most respondents surveyed at

last year’s Digital Mortgage conference thought that a digital mortgage includes electronic closings

• ABA: “The digital mortgage is more of an ideal than it is a concrete product.”

eClosing Foundational Components

Lender

Closing Package

LoanOrigination

System

BorrowerPortal

eNote

NotarizedDocs

AncillaryDocs

Investors

CountyRecorder

Title Docs

Deed of TrustSecurity InstrumentRiders

MISMO® SMART Doc®

eRecording

DocEngine

eSignatureEngine

eVault

eNotarization

WarehouseLenders

Servicers

Custodians

Title & Settlement

TitleProduction

System

Digital Mortgage Resources at Your Fingertips

• UETA (Uniform Electronic Transactions Act)

• Uniform state law template passed in 1999

• Now adopted in 48 jurisdictions (remaining states have passed their own versions)

• ESIGN (Electronic Signatures in Global and National Commerce Act)

• Federal law signed in 2000

• Created “safety net” for national implementation of eSignatures because very few

states had adopted UETA

• What both laws essentially say:

• Decision to receive documents electronically and/or sign them electronically is an

“opt-in” decision (all parties must agree to using this process)

• A document (electronic record) or a signature can be in electronic form

• If performed properly, eSignatures and electronic records are legal (i.e., they

cannot be denied enforceability solely because they are in electronic form)

• What neither law says:

• Format of the electronic record or signature to be used (“Technology Neutral”)

• Valid eSignatures include click-sign, recorded voice (“I agree”), signing pads,

and PKI digital certificates

Legal

Foundations

Digital Mortgage Resources at Your Fingertips

Definition

Translation

Paper World

• Negotiable Instrument

• Original ink-signed Note

• Possession

• Holder of the Note

• Custodian

• Endorsement and Delivery

• Chain of Endorsements

• Servicer

Electronic World

Transferable Record (“eNote”)

Authoritative Copy of eNote

Control

Controller

Location (eVault)

Transfer of Control

Audit Trail (on MERS eRegistry)

Servicing Agent

→

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Digital Mortgage Resources at Your Fingertips

• A national eNote registry

• Central database that identifies the current Controller (Holder) and Location

(Custodian) of the eNote

• NOT an eVault; does not store copies of the eNotes themselves

• Standardized delivery of electronic documents from one member to another

• Companies use existing interface to MERS® eRegistry – eliminate multiple B2B

custom interfaces

• Reuses MERS and MISMO standards of the MERS® eRegistry

• Required by Fannie and Freddie for delivery of eNotes

MERS® eRegistry

MERS® eDelivery

IMPORTANT:

These are separate, distinct systems from “Classic MERS” - the MERS® eRegistry identifies the Controller of an

eNote, where classic MERS handles the registration of the Mortgage or Deed of Trust in the county land records.

Digital Mortgage Resources at Your Fingertips

MERSCORP Holdings Tools and Resources

MERS® eRegistry

Digital Mortgage Resources at Your Fingertips

MERSCORP Holdings Tools and ResourcesMERS® eDelivery

Digital Mortgage Resources at Your Fingertips

MERSCORP Holdings Tools and ResourcesMERS® eNote Solutions

Digital Mortgage Resources at Your Fingertips

MERSCORP Holdings Tools and Resources

Digital Mortgage Resources at Your Fingertips

MERSCORP Holdings Tools and Resources

Public website: www.mersinc.org - Most recent registration count

Digital Mortgage Resources at Your Fingertips

MERSCORP Holdings Tools and Resources

Public website: www.mersinc.org - Active companies, by segment

Digital Mortgage Resources at Your Fingertips

MERSCORP Holdings Tools and Resources

Public website: www.mersinc.org - Quick facts, product Information

Digital Mortgage Resources at Your Fingertips

MERSCORP Holdings Tools and Resources

MERS® System Member site https://members.mersinc.org/

Members can access this site for• User Guides• Reference and technical documentation• Quick Reference Guides• Bulletins• MERSCORP news• MERSCORP events

Digital Mortgage Resources at Your Fingertips

MERSCORP Holdings Tools and Resources

MERS® eRegistry Integration

During the integration process, you’ll benefit from …

• An Integration Manager to lead you through the process

• Access to the MERS® eRegistry test region (also available post-integration)

• Assistance with procedures and process flows

• A dedicated liaison between you and your business partners and tech partners

Digital Mortgage Resources at Your Fingertips

MERSCORP Holdings Tools and Resources

MERSCORP Holdings eNote Subject Matter Experts

Email ecommercedept@mersinc.org

Digital Mortgage Resources at Your Fingertips

Open Forum

Questions?

Thank You For Joining Us