Transcript Document
GSE UPDATE AND MERS eREGISTRY MBA’s Legal Issues In Mortgage Technology Conference San Diego, California December 2, 2005 James A. Newell Associate General Counsel Freddie Mac [email protected] Building Blocks of Freddie Mac Technology Industry eMortgage Vision • Loan Prospector • Selling System Data Standards Servicing System Data Security Default Management System Data Integrity Web-based Platform 2 2 Value Proposition • Freddie Mac Or Other Investor » Increased speed of funding with eNote » Improved data accuracy and quality » Reduced loan delivery cost (handling & storage) » Elimination of back-office processing (automated note certification) » Potential prevention of predatory lending (HUD-1 Smart Docs) » Improved fraud detection and examination 3 Value Proposition • Lenders and Other Industry Players » Faster securitization: Warehouse line cost reduced for lender » Velocity lending: Elimination of note endorsements » Shorter duration gap and interest rate risk » Facilitates product bundling » Facilitates data storage and retrieval » Automates servicing loan setup 4 Our Guiding Philosophy • The eMortgage solution belongs to our customers who can control: » The vendor selection » The functionality of the solution » The investor(s) to which it connects » The user experience of their internal and external customers as they interact with the solution. • Freddie Mac will provide the connections and functionality that are inherent to us purchasing the loan in the most efficient way. • Freddie Mac believes in the value of open standards. 5 Open Standards Lender Freddie Mac eRecording Service Ordering: AUS Servicing eDocs# Electronic Document / Electronic Note Infrastructure MI Credit Valuation Flood Hazard Title eOrigination eDoc Prep QC QC eClosing Delivery Non Performing QC Fraud Collateral Evaluation Other * eSignatures MISMO XML Data Transactions And eDocs# eVault Title / Closing Buyer / Sller eNote Registration & Transfer Messages Freddie Mac Role Key • Publish policies Freddie Mac Proprietary • Publish specifications Best-in-class technology vendor or lender • Supply call features (e.g. Underwriting decision, fraud tools, delivery purchase edits, etc) eNote Registry • Build integration • Test, verify and support integration processes 6 Supporting Open Standards • Contributing to MISMO eMortgage standards initiatives including data, SMART Document, eClosing Legal WG. • Participating in continuing development of MERS eRegistry • Supporting implementation of SPeRS deliverables. • Participating member of the PRIA. 7 Implementation Plan • Collaborate with technology vendors and our customers to create integrated solutions for streamline electronic document and data flow. • Leverage the infrastructure of our new web-based selling system and best-in-class electronic document and electronic mortgage solutions. • Incremental approach to deploying new processes to minimize disruption. 8 Where We Are Now • eMortgage Specifications Guide (EOY 2005) » Sets forth requirements and guidance for Sellers that wish to create or manage mortgage loans using Electronic Records and Electronic Signatures. • Guidelines for: » Acceptable signatures » Creating and using natively electronic documents » Storing and sharing documents electronically » Creating, delivering and managing electronic notes and other collateral documents • Incorporated uniform language in the eNote in conjunction with Fannie Mae 9 Summary • To enable Freddie Mac and our customers to reduce loan costs through the use of widely accepted electronic mortgage documents and data. • To take thoughtful approach, inclusive of all parties, relevant to our mission, and makes good business sense. • Facilitate the mortgage industry’s adoption of eMortgage capability through leadership in industry standards organizations. 10