Toronto, ON: TAO Solutions, a leading global provider of software and services for structured finance and credit asset administration, is delighted to announce the successful completion of their eSignature Pilot Project. The project represents the development of a new, unique custodial management system for participants of the National Housing Association Mortgage Backed Securities Program (NHA MBS).
The eSignature pilot was initiated with support and participation between TAO Solutions, a well-known custodial partner and a “Big 5” Schedule I bank. The purpose of the partnership was to prove the possibility and benefits of eSignature implementation within the NHA MBS Program.
Over the last decade the NHA MBS Program has become a fundamental source of funds for the insured mortgage lending industry. This has led to a significant increase in the number of physical documents required to be signed by all parties involved, and ultimately this a time consuming, inefficient process that utilizes excessive amounts of paper documents.
More than a year ago, TAO Solutions and its partners, recognised that the implementation of eSignature technology would help to pioneer the digital transformation of the wider Canadian structured finance industry. The successful pilot program was able to prove that the eSignature technology can be successfully utilized at scale by a Schedule I bank as well as demonstrating a number of important findings for all parties involved. This includes:
- Demonstration that the eSignatures process is more efficient, produces less waste, while still creating a record of the necessary documents in their digital form
- Providing a reference point to confirm the satisfaction of key legal requirements for the usage of eSignatures when implemented on a larger scale
- Improving the workflow and functionality of the eSignature concept over the course of the three-month trial to overcome any perceived or real issues that arose through practical use
- Presentation of a summary report to all involved NHA MBS stakeholders that highlighted the positive results of the project and outlined a path toward full adoption
Reflecting on the project, Aaron Seaton, Chief Executive Officer, TAO Solutions said, “Extending the benefits of Financial Technology (FinTech) to aspects of NHA MBS program has the potential to dramatically change the way all issuers operate within the market. Over the last decade, the NHA MBS Program has exponentially grown to become the most important mortgage funding vehicle in Canada. We have now proven through our successful pilot project, that introducing eSignatures into this process can offer a paperless solution to relieve the increasing burden of physical copies of issuance related legal documents having to be physically signed and stored as part of the NHA MBS Program. We have worked hard to bring this new technology to fruition with our partners and thank all who helped make this a reality.
“While eSignatures would be available for all issuers to use, special functionality will be afforded to the majority of NHA MBS Issuers who now use TAO Solutions’ mortgageHUB application. Once fully adopted and approved by the relevant parties, we are delighted to share that eSignature capabilities would be seamlessly integrated into our customer’s workflow. We also have definitive plans to incorporate similar eSignature technology into our newest product, LeaseSPARK”.
After the successful completion of the pilot project in May 2018, TAO Solutions is looking forward to working with all industry partners involved to bring this project to a production state. Once fully implemented, eSignatures can serve as a springboard for other innovative technologies that have the potential to enrich the NHA MBS Program and benefit the industry as a whole.