Industry Electronic Document Formats

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Industry ElectronicDocument Formats

• SMART Documents
• March 3, 2005

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eBusiness

• Business is going to change more in the next
  ten years than it has it the last fifty.1
• The Flow of Information
• Connectivity (Internet)
• Exchange (XML)

• 1Bill Gates, Business _at_ the Speed of Thought,
  1999

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MISMO

• Mortgage Industry Standards Maintenance
  Organization
• Building a framework for providing efficient,
  reusable eBusiness transactions to the mortgage
  industry
• Standards are crucial to information exchange

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MISMO Organization
Board of Directors
eMortgage
Governance
SMART Doc
ePackaging
eMessaging
eVaulting
ROI
I-Guide
eRecording
PRIA
Core Data
eNotarization
CMSA
NNA
Logical Data Dictionary
SPeRS
USNA
Residential Process Area Workgroups
SISAC
Origination
Information Security
Underwriting
Mortgage App
Secondary
Closing
Servicing
Appraisal Institute
ALTA
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The Foundation (XML)

• Common language between business partners
• Logical Data Dictionary
• 5,000 Data Elements
• Ensures that Address is consistent across
  transactions like Mortgage App, Credit, Title,
  Flood, Closing
• Extensible (allows custom data without breaking
  the standard)
• Standards are crucial

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eMortgage Objectives

• Lender
• Shorten time frame
• Paper to electronic
• Reduce errors / costs
• Status of Loan
• Process Improvement
• Enhance the consumer experience

• Consumer
• Shorten time frame
• Preview documents
• Provide education
• 24 x 7 access
• Simplify the process
• Enhance the consumer experience

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eMortgage Process Flow
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eDocuments

• Objectives
• Complies with eSign and UETA
• Captures more evidence about signing ceremony
• Develop an electronic document that binds data
  presentation in a unchallengeable, immutable file
• Accommodate a wide range of platforms
• Select a technology that has a potentially long
  life

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MISMO SMART documents

• Genesis Note
• Tie data docs together
• Leverage the Logical Data Dictionary (LDD)
• Closing data set (DTD)
• Additional SMART documents
• Application (URLA)
• Closing (Hud-1)

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SMART DocumentsSatisfy the Objectives
SMART Securable Manageable Archivable Retrievable
Transferable
Document info, metadata, access control,
signature model
Header
Audit Trail
Record of events
XHTML / SVGView
What the buyer sees and signs
May 1st, 2005Closing Date
Maps View fields into Data
Map
ltCLOSING_DATEgt20050501lt/CLOSING_DATEgt
Data
XML data for Lights-Out processing
Signatures
Signing processes that comply with ESIGN and UETA
Tamper-Evident seal
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SMART Document Levels
View types added for version 1.1
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SMART Document Structure

• SMART Documents are XML documents
• Uses open standards
• 3 Key Parts

XML Document
Header
Data
View
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Outputting SMART Documents
UFX File
Form Data DTX
Form Image UFF/CDD
Featuring Info CFF
SMART Document Info
Formatting Component
Document Engine
Header Info XML Mapping ARC and mask
Raw Data
Client Application
Output Converter
SMART Document
Presentational Data
e-Mortgage Writer
Data Section
XHTML/PDF Writer
View Section
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eMortgage Today Data Docs

• Its all about the data
• Current data quality problems cost U.S.
  businesses more than 600 billion per year.1

1 Data Quality and the Bottom Line Achieving
Business Success through a Commitment to High
Quality Data. The Data Warehousing Institute.
Report Series 2002.
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eMortgage Today Data Docs

• Its all about the data
• Control
• How you gather, manage and use information
• Quality
• Fitness for use

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eMortgage Today Data Docs

• Its all about the document
• Treat docs as data
• Challenge- data mapping
• Think electronically
• Purpose / Design

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Challenges

• Consumers more technical
• Improvement (Its not enough)
• Doing the same thing better
• Transformation
• Doing things differently

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Technology

• Technology Investment
• Conflict with Existing Strategies
• Technology is the easy part
• Its culture change thats hard.

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eMortgage Process Flow
Key
PRIA
MISMO
Legal eDocs (Land records, tax liens, other
docs/affidavits)
eRecording
eClosing
eDocuments
eNotarization
eVault
eSignatures
eNote Data, Messaging Control
National eNote Registry (MERS eRegistry)
Buyer
Seller
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Its All About the Forms

• We cannot tolerate the proliferation of this
  paperwork any longer. It is useless to fight the
  forms. We must kill the people producing them.1

1 Attributed to Vladimir Kabaidze, Director of
the Ivanovo Machine Works near Moscow, in a
speech before the annual Communist Party
Congress, 1936.
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Thank you!

• Roger Gudobba
• Senior Principal, Strategic Business Development
• VMP Mortgage Solutions, Inc.
• 586.285.6380
• Roger.Gudobba_at_vmpmtg.com