Wolters Kluwer eOriginal Technology Utilized by Ginnie Mae for First Fully Electronic Securitization
- Data , Data Management
- 24.02.2021 11:13 am
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 eOrginal platform.
According to Wolters Kluwer, the MBS were part of the January issuance cycle and backed by digital pools comprised exclusively of eNotes that closed in December 2020, totalling 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.
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 mcrtgage, auto, consumer, commercial and more,” according to a Wolters Kluwer statement.
“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.”
“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.”
Wolters Kluwer acquired eOriginal for approximately €231 million in cash at the end of 2020. The acquisition was a strategic decision to “extend Compliance Solutions’ leading position in U.S. mortgage and loan document generation and analytics into the fast-growing digital loan closing and storage adjacency.”
Wolters Kluwer Compliance Solutions has had a strategic partnership with eOriginal since 2016, which allows the integration of eOriginal’s electronic vaulting and closing software with Expere. The offerings of eOriginal and GRC Compliance Solutions “are highly complementary and together will form an industry leading end-to-end digital lending platform,” according to Paul Lyon, Global Director of Corporate Communications for Wolters Kluwer’s Governance, Risk & Compliance (GRC) division.
Wolters Kluwer Compliance Solutions is a 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 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. As previously reported 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.