Fiserv Inc., a provider of information technology services to the financial industry, says that Troy, Mich.-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 Freddie Mac under a new paperless process test initiative.
Flagstar Bank utilizes the Fiserv eLending platform for its e-mortgage signing, closing and post-closing processes. The company stores e-notes 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 e-notes from Flagstar gives us flexibility in the secondary market,’ states 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 e-note is automatically registered with the MERS eRegistry to establish an authoritative record of ownership and document custodianship. The Fiserv platform transparently invokes MERS eDelivery for vault-to-vault asset transfers.
Sources: Flagstar Bank, Fiserv