Presentation Title

							       eCommerce



  Today’s eCommerce
     Environment
 Katie Paolangeli , MERS
Steven Horne, Wingspan
       Advisors
Robin Belanger, Moderator
eCommerce
                   Agenda
     • MERS eRegistry Update
     • MISMO Update
     • Data Stardards – Universal Loan
       Number Initiatives
     • What’s new? – eModifications
     • Questions
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eCommerce
       Today’s eCommerce
           Environment

      MERS and MISMO Update
       Katie Paolangeli, MERS




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MERS® eRegistry
As of August 11:
• 126,841 eNotes registered

• 22 participating companies (Lenders,
  Investors, Servicers, Warehouse Lenders)

• 10 companies in integration

• 5 vendors are live

• 7 vendors in integration                   4
MERS® eRegistry, cont’d
Release 6.0
• Release Date June 8, 2009
• Added “Servicer” field to handle ‘Change Status,’ ‘Change
  Data’ and some Transfer transactions
• Changed the role of the “Delegatee” field
   – Removed ability to handle Servicing transactions listed
     above
   – Enhanced to allow the OrgID in this field to Initiate
     Transfers of Control to itself or another party, based on
     pre-established relationships
• Allow Members to choose auto- or manual-confirmation of
  Transfers of Servicing


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MISMO Update
MERS Management of MISMO for the MBA
    MERS is responsible for managing the day to day operations of MISMO. MBA
    retains full ownership of MISMO and maintains a permanent seat on the
    MISMO Board of Directors

Version 3.0
•   Final publication was on August xx, 2009, after a 30-day intellectual property
    review period

•   Version 3.0 is a major architectural shift for MISMO
     – transition from DTD to Schema
     – demonstrates MISMO’s commitment to uniformity and a commonly shared
       data construct that provides an enterprise-level data model
     – will simplify the ability to combine different types of data in the same
       electronic package; the application of electronic signatures; and allow for
       consistent data management across all business transactions                 6
MISMO Update, cont’d

Participation/Adoption

• Industry-wide participation in developing and reviewing Version 3
• Workgroups focusing on many current and critical topics, for the
  benefit of the industry
• Commercial also represented
• Survey of MISMO adoption shows agreement on the value of
  standards and high level of current use. Majority of respondents plan
  to expand their use of MISMO standards




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Data Standards
Universal Loan Number
A numbering system for all mortgage industry participants to
  generate and/or recognize a unique loan number for each
  mortgage

Reasoning/Benefits
• Transparency – a loan number can be created at
  origination and stays with the loan throughout its life. The
  history of a loan can be tracked.
• Interoperability – provides a standard to be used between
  trading partners.
• Data Integrity – one loan number used across all systems
  (origination, selling, servicing, document custody) means
  no errors when identifying particular loans
• Can be used to detect and prevent fraud
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.
Data Standards, cont’d
MIN as the Solution
• The Mortgage Identification Number (MIN) is recognized by
  the GSEs and incorporated into all origination, servicing,
  custodial and investor delivery systems
• Is part of MISMO standards
• Is currently in the county records on 60,000,000+ loans
• MERS Members control their own MIN generation. No third
  party needed, no costs involved
• Can be used on loans whether or not MERS is the
  Mortgagee
• Can be registered on the MERS® System pre-closing
                                                           9
How Technology Improves Loan Resolution Performance:
  Using eMods for Improved Results and Lower Costs
                   Steven Horne
• Using eMods saves money and
  improves loan resolution
  performance



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Two Scenarios

Without eMods

With eMods




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High Touch Works

Dialers and automated messaging are a
 turn-off and are easy to avoid

Taking the time to listen to a borrower
 pays off

Investing in proactive information
 management works


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Proactive Information Management
Builds Trust

Gathering information prior to first borrower
 contact builds borrower confidence, narrows
 applicable workout options, and saves time.

An in-depth understanding of the borrower’s
 circumstances, and the recovery potential of
 the loan ensure the best possible outcome
 of each call.

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Proactive Information Management
Builds Trust

  Sample Factors:
   Current Credit Condition
   Credit at Origination
   Payment Pattern
   Current Market Conditions
   Lien Position
   Effective Equity
   Prior Servicer Strategies
   Psychological Equity




                                   15
Coordinated Legal Services Increase
Success
 Working closely with a network of
experienced, qualified attorneys is
critical to loan resolution success

Coordinating legal services with loan
resolution effort leverages the legal
processes to maximize the number of
loans avoiding foreclosure


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Better Technology Saves Money and
Loans
  Better technology increases
 accountability and maintains focus

  Better technology produces more
 workouts

  Better technology saves money

  Better technology creates time that can
 be spent with borrowers
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Steve Horne, President and CEO
Steven Horne is founder and President and CEO of
Wingspan Portfolio Advisors. Prior to starting
Wingspan, he led the reorganization of Fannie
Mae’s National Servicing organization. For the
nine years before that he was a partner with
Sherman Financial Group where he developed
innovative loan resolution strategies, systems
solutions, and workflow.




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eCommerce
     • Thank you for attending the
      eCommerce Session


     • Questions?


     • Feedback/Surveys
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