eNotes transaction signals transformative industry turn toward digitization
Wolters Kluwer Compliance Solutions’ newly acquired eOriginal technology platform is helping support a major U.S. government institution’s efforts to adopt digital technologies as part of its broader modernization initiative.
Ginnie Mae, an eOriginal client, recently announced a key milestone in its digital journey by guaranteeing securitization of mortgage-backed securities (MBS) for the first time exclusively through the use of eNotes technology, utilizing the eOriginal platform. The MBS were part of the January issuance cycle and backed by digital pools comprised exclusively of eNotes that closed in December 2020, totaling approximately $24 million in aggregate principal value. By accepting eNotes as valid collateral for loan products issued by the Federal Housing Administration, Veterans Administration, U.S. Department of Agriculture and other government entities, Ginnie Mae enables broader acceptance of digital mortgages across the residential lending ecosystem.
“This transaction marks a turning point for Ginnie Mae and for the broader mortgage industry in facilitating the digital securitization of loans,” said Angel R. Hernandez, Director of MBS Policy and Program Development, Office of the President for Ginnie Mae. “Our use of digital technologies such as eNotes speeds transactions and helps support consumer access to credit while reducing the risk of defects in loan instruments, and it sets the foundation for broader and more rapid adoption of digital mortgages.”
The eOriginal platform enables lenders and their partners to create, store and manage digital assets through a leading set of purpose-built electronic signature, closing and vaulting solutions including SmartSign®, ClosingCenter™ and eAsset® Management (with connectivity to the MERS eRegistry). The platform enables frictionless, secure and trusted transactions of digital loan assets and is used by all types of lenders including mortgage, auto, consumer, commercial and more.
“Ginnie Mae’s adoption of our eOriginal platform for its securitization process marks the continued progression—and acceleration of digital technologies that are helping speed and secure transactions in the mortgage ecosystem,” said Steven Meirink, Executive Vice President and General Manager, Wolters Kluwer Compliance Solutions. “With eOriginal’s purpose-built electronic signature, eClosing and eVaulting capabilities now part of our portfolio, we have an end-to-end digital capability and are well-positioned to assist lenders throughout all phases of the lending process, from origination through to the secondary market, with compliance certainty.”
Wolters Kluwer Compliance Solutions is a market leader and trusted provider of risk management and regulatory compliance solutions and services to U.S. banks and credit unions, insurers and securities firms. The business, which sits within Wolters Kluwer’s Governance, Risk & Compliance (GRC) division, helps these financial institutions efficiently manage risk and regulatory compliance obligations, and gain the insights needed to focus on better serving their customers and growing their business.
Wolters Kluwer GRC provides an array of expert solutions for legal and banking professionals to help ensure compliance with ever-changing regulatory and legal obligations, manage risk, and increase efficiency. These solutions include customized offerings to address Covid-19 challenges. Wolters Kluwer Compliance Solutions’ Paycheck Protection Program Supported by TSoftPlus™, for example, helps U.S. lenders’ small business customers access critical stimulus funding. Wolters Kluwer CT Corporation, meanwhile, has launched a Covid-19 resource center to provide businesses and law firms with international, federal and state legislative updates. Other expert solutions include Wolters Kluwer Lien Solutions’ UCC Manage, which enables lenders to manage and address risks in their entire Uniform Commercial Code lien portfolio with analytics, visibility and automation.
About Wolters Kluwer Governance, Risk & Compliance
Governance, Risk & Compliance is a division of Wolters Kluwer, which provides legal and banking professionals with solutions to help ensure compliance with ever-changing regulatory and legal obligations, manage risk, increase efficiency, and produce better business outcomes. GRC offers a portfolio of technology-enabled expert services and solutions focused on legal entity compliance, legal operations management, banking product compliance, and banking regulatory compliance.
Wolters Kluwer (AEX: WKL) is a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. Wolters Kluwer reported 2019 annual revenues of €4.6 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide.