Each year, I look forward to the Mortgage Bankers Association’s Annual Conference. Industry leaders come to the event to network, discuss the latest and greatest trends, and announce new partnerships. This year was no exception.
As the dust settles on 2018’s conference, hosted in eOriginal’s backyard of Washington D.C., I am reflecting on our momentum in the mortgage space. It’s hard to believe that when I attended MBA Annual 2016 in Boston, I had many industry colleagues asking, “Who is eOriginal?” Fast forward a year to MBA Annual 2017, and there was far more of a buzz thanks to news of eOriginal’s partnerships with both Fannie Mae and Quicken Loans.
This year, the eOriginal team was out in force at MBA Annual 2018 and was thrilled with the turnout for our splash event at Cuba Libre. The mixer was a fantastic way to celebrate the industry’s ongoing digital transformation and our recent big news that Wells Fargo Home Lending has selected eOriginal’s technology for its upcoming eNote program!
Tipping the Scales from Paper to Digital
Not only is this incredible news for eOriginal, but for the entire mortgage industry. As noted in The Mortgage Lender, “The decision to deploy the platform could tip the balance in favor of widespread industry adoption of the technology. One of the factors driving the lack of adoption—Fannie Mae and Freddie Mac accepted e-mortgages, but few investors did–was the concern over the legality and enforceability of [eNotes] as security in the investor community. But with Wells Fargo committing to the technology, the possibility for far more widespread adoption among lenders has increased.”
An eNote is an electronic version of what traditionally was a paper document. As the evidence of the obligation to repay the mortgage loan, the eNote needs to be digitally stored in a way that ensures it has the same legal enforceability as paper. eOriginal provides this storage capability through its eVault service.
According to Michael DeVito, head of Wells Fargo Home Lending, “Our ability to purchase eNotes is the latest step in our expansion in the digital lending space that broadens our approach to serving consumers and clients as we transform our mortgage business.” He continued, “We’re committed to delivering innovative solutions throughout the mortgage lending process. With eOriginal providing eVault services, we’re aligned with a company that has a proven track record in the digital lending community.”
The eVault system time stamps and tracks access, ensures compliance, reduces operational costs around quality control, reduces operational risk, increases capital efficiency and improves secondary market execution. Increasing efficiency of the end-to-end process will allow lenders a better use of warehouse lines and reductions in their float and hedging costs.
“Lenders transitioning into digital mortgage can move forward knowing a trusted technology partner is aligned with the industry’s leading aggregator,” eOriginal CEO Brian Madocks said to HousingWire. “This agreement with Wells Fargo facilitates a new, essential outlet for lenders to deliver loans with eNotes into the secondary market.”
The capability will make digital mortgages accessible to a broad spectrum of lenders who can realize the advantages of going digital, such as increased efficiency and improved execution while also reducing risk.
Upcoming Webinar: Digital Mortgage and the Secondary Market
Later this week, on October 25, I will be joined by three trailblazers leading the mortgage digital revolution for a live webinar. In this session, Tom Wilkins of Mortgage Media, Shane Hartzler of Fannie Mae and Brian Webster of Wells Fargo Home Lending will provide personal insights as they discuss advances that are changing the industry’s ecosystem and reveal why a digital mortgage strategy has become a competitive necessity to drive growth and profitability.
If you have yet to register, I strongly recommend you do-so, as space is limited.
In closing, none of this momentum would be possible without the incredible team I work with daily, and all of our fantastic customers and partners across the mortgage ecosystem. I look forward to sharing additional insights on the digital mortgage revolution as we look to what is sure to be an exciting 2019.