Flagstar Bank to originate electronic notes using FiservMortgagePress.cominformation technology services, electronic notes, loan origination product
Fiserv, Inc., a provider of information technology services to
the financial industry, announced today that Troy, Michigan based
Flagstar Bank, a $14.6 billion-asset federal savings bank, has
begun to originate its prime residential mortgage loans with
electronic notes using Fiserv technology, for sale to McLean,
Virginia based Freddie Mac, one of the nation's largest investors
in residential mortgages, under a new paperless process test
initiative.
Flagstar Bank utilizes the Fiserv eLending platform for its
eMortgage signing, closing and post-closing processes. The company
stores eNotes and other closing documents in the Fiserv eVault and
facilitates the electronic transfer of assets to loan servicers and
secondary market investors, such as Freddie Mac.
"Having Freddie Mac as an investor that purchases eNotes from
Flagstar gives us flexibility in the secondary market," said Brian
Boike, first vice president of lending support for Flagstar.
"Fiserv enables us to move full speed ahead on our expansion plans
and fully realize the benefits of a paperless mortgage."
The Flagstar eNote is automatically registered with the MERS
eRegistry to establish an authoritative record of ownership and
document custodianship. The Fiserv eLending platform transparently
invokes MERS eDelivery for vault-to-vault asset transfers.
All of the eNotes being originated under the process test must
meet Freddie Mac mortgage credit standards and eMortgage
specifications.
Freddie Mac's willingness to participate in this initiative is
further proof that eMortgages will become the standard throughout
the mortgage industry," said Kevin Collins, president, Fiserv Loan
Origination Products. "Benefits such as faster closing times,
reduced shipping and courier costs, and more borrower transparency
led Flagstar and other technology-savvy lenders to adopt eMortgages
to streamline their lending processes."
Flagstar's use of the SMART Doc eNotes helps to qualify the
assets for secondary market sale to Freddie Mac. The e (GSE) is
among a growing number of investors now purchasing eNotes for U.S.
residential properties.
"Today's announcement underscores Freddie Mac's commitment to
explore the potential eMortgage technology to reduce the time and
expense to make homes possible for qualified borrowers," said
Patricia McClung, Freddie Mac's vice-president of Single Family
Sourcing.
For more information, visit www.flagstar.com.
