Beyond eNotes: V3 SMART Docs–Sponsored Content from Stavvy

Author Angel Hernandez is the Chief Strategy Officer for Stavvy, a Boston-based digital mortgage fintech. In this role, Angel leads the company’s strategic partnerships with industry stakeholders, supports M&A activities, and champions innovation in mortgage operations. Prior to joining Stavvy, Angel held positions at the Housing Policy Council (HPC) and Ginnie Mae, where he focused on mortgage securitization, market safety and soundness, and technology adoption. With a background in community relations, brand marketing, and sales management, Angel earned his JD and Securities Law Certificate at the Catholic University of America, Columbus School of Law.

SMART Docs® are not just for eNotes. They deliver savings and efficiency for any loan documents in tighter margin environments.

In an industry where efficiency and compliance are paramount for cost reduction, SMART Docs® revolutionize loan manufacturing processes. Using advanced technology, SMART Docs® binds data, views, signatures, and audit trails into a single tamper-proof electronic file, delivering a seamless, compliant, and efficient experience. This article explores the value of V3 SMART Docs® and how these documents create a new standard in the mortgage industry for any type of loan document.

Understanding SMART Docs®
SMART stands for:
Secure
Manageable
Archivable
Retrievable
Transferable.

A SMART Doc® is a comprehensive electronic file designed for the long-term storage and retrieval of data. It integrates underlying source data with views, signatures, and audit trails while adhering to a standardized specification set by MISMO® (Mortgage Industry Standards Maintenance Organization). SMART Docs® facilitate the creation and management of electronic documents across the entire mortgage lifecycle.

Challenges of Traditional Documents
Maintaining data integrity throughout the mortgage process is critical. Traditional workflows often rely on static PDFs that are not updated with real-time data, opening the possibility for inaccuracies and missing information. In addition, traditional paper or PDF loan documents lack robust date and time stamp audit trails necessary for verifying compliance with regulations like TRID on an automated basis. SMART Docs® eliminate these limitations, supporting clean, secured, accurate, and verifiable data throughout all phases of the mortgage lifecycle.

The Evolution of SMART Docs® from V1 to V3
V1 SMART Docs® pioneered secure, electronic mortgage documents and drove eNote adoption by introducing XHTML-based specifications. While Version 1.02 ensured document integrity by unifying view and data within a single file, its reliance on HTML limited portability beyond eNote applications. Version 3 expands SMART Docs® capabilities by enabling validation of PDF documents and incorporating the full MISMO data set, not just closing-related information. This broader adoption of the industry-standard PDF format enhances usability, reliability, and efficiency. By accurately capturing and storing borrower-signed documents, SMART Docs® Version 3 delivers unparalleled trust, security, and verification for investor systems.

Beyond eNotes: Leveraging SMART Docs® Across All Loan Programs
The application of SMART Docs® is not limited to eNotes. SMART Docs® can extend to all loan documents across all loan programs, including home equity products and other loan types. A complete V3 SMART Docs® loan package allows users to transfer, archive, and retrieve documents with ease and without the cost or hassle of physical shipping. V3 SMART Docs® are fully tagged so signatures can be captured without relying on AI, OCR, or manual verification after execution. They carry a tamper-proof seal and include robust audit records to protect against alterations, enabling automated system-based review, validation, and certification.

Enhancing Investor Confidence with eHELOC
eHELOCs are transacted electronically using V3 SMART Docs® eAgreements. This technology forms the foundation of a secure process, allowing investors to purchase home equity products confidently, making eHELOCs a viable option for non-portfolio lenders.

Secure Document Management with eVault
SMART Docs® leverage an eVault to create, store, and manage these digital assets in a user-friendly, secure, interoperable, and compliant manner. An eVault facilitates seamless collaboration between lenders, custodial partners, servicers, rating agencies, and the secondary market. This ensures optimum liquidity and visibility for digital loan packages, making it easier to sell, trade, and acquire these assets throughout the entire lifecycle. The eVault also supports compliance with legal, regulatory, and industry standards, being MISMO®-certified and GSE-approved, thus providing a reliable and efficient environment for managing electronic records.

Maximizing Efficiency with eClosing
V3 SMART Docs® inherently leverages eClosing technology, allowing borrowers to execute documents online from any location, enhancing convenience and accelerating the closing process. V3 SMART Docs® can also utilize remote online notarization (RON) or in-person electronic notarization (IPEN), ensuring a higher level of security and compliance with stringent digital identity verification protocols.

Enhancing Compliance and Reducing Costs
A compliance engine can leverage the searchability of V3 SMART Docs® to audit every aspect of the file. This ensures compliance with all federal, state, and investor requirements at every stage, eliminating trailing documents or missing data. Automated compliance checks continuously audit every document, reducing the need for manual re-underwriting before closing.

The Economic Advantages of V3 SMART Docs®
Implementing SMART Docs® technology can streamline the mortgage process and offer the following economic benefits:
-Operational Cost Reduction: Eliminating outdated tasks like scanning, printing, and manual data re-entry can generate substantial cost savings.
-Efficient Document Handling: Streamlining document preparation and utilizing eSign reduces the need for third-party services.
-Automated Compliance and Verification: Reducing the labor and time required for compliance checks and post-closing quality control can lower operational expenses.
Benefits for Originators and Sellers
-Quicker Closing: Faster closing times can deliver better customer experiences, creating an advantage in a competitive marketplace.
-Consistency and Compliance: Facilitate investor approval by ensuring all closing documents align with current investor overlays and meet SMART criteria.
-Faster Funding: Accelerate the funding process by assuring that all data and documents are current, complete, consistent, and compliant.

Benefits for Investors and Funders
-Greater Certainty and Trust: XML source data in V3 SMART Docs® ensures that the data viewed and signed is identical to the securely delivered data, reducing operational costs and enhancing efficiency.
-Reduced Turn-Times: Minimizing the risk of errors and reducing the occurrence of downstream ‘dirty data’ facilitates quicker payments with fewer exceptions.

Closing with Confidence
V3 SMART Docs® ensures that data and documents are in sync, consistent, clean, complete, and compliant. This holistic focus on SMART Docs® allows faster and more secure mortgage closings, providing peace of mind for both lenders and investors.

Stavvy’s Commitment to Modernizing Real Estate Transactions
Stavvy transcends traditional digital mortgage solutions by integrating SMART technology across the entire loan file. This holistic approach streamlines the mortgage process and can lead to significant cost savings by safeguarding a single source of truth and reducing the need for multiple platforms. By connecting people, systems, and processes, Stavvy modernizes the real estate transaction through collaboration, reliability, and choice, facilitating the unrestricted flow of data and transforming all phases of the transaction from application to loan delivery and beyond.

Embrace the future of mortgage lending with Stavvy’s V3 SMART Docs® and experience unparalleled efficiency, security, and compliance in your lending processes.

Join us in: Moving real estate beyond documents.
Unlock the potential of V3 SMART Docs® for your organization. Connect with Stavvy to get started.

(Sponsored content includes material submitted independently of the Mortgage Bankers Association and MBA NewsLink and does not connote an MBA endorsement of a specific company, product or service. For more information about sponsored content opportunities, contact Bill Farmakis at bill@jlfarmakis.com or 203/834-8832.)