GMAC Bank, the financial services arm of General Motors, has adopted Encomia's information technology system designed to securely store electronic mortgages.
The storage system, Vault, provides secure documentation authentication through smart cards and digital certificates. GMAC Bank said that it will now be able to offer eCustodial services to lenders, such as GMAC Mortgages, as part of its overall mortgage note custodial services.
The adoption of electronic mortgages, or eMortgages, has the potential to lower costs for lenders and reduce the risk of paper documents becoming lost. According to the Mortgage Industry Standards Maintenance Organization (MISMO) and the Mortgage Bankers Association, using MISMO standards in a virtually electronic industry could possibly reduce costs by as much as $249 per loan.
Barbara Krawczun, vice president of GMAC Bank’s trust operations unit said: As the mortgage industry catches up to other forms of electronic commerce and supports the buying, selling and storage of electronic documents, these operational groups will want to align their businesses with how ‘everyone else does it.’ We believe by adopting new technology we will gain a jumpstart in supporting the evolving needs of our customers.