Digital Asset Focus Group Feedback

Feedback from

Peter Barnard

Some very interesting thinking yesterday.  Thanks for including me.  Just some top of mind this am.

Pro’s (in descending order for me):

  1.  state of the art, end to end, paperless mortgage from lead to close to post close.  To my mind, this is the most critical pro.  Esp for the small to mid sized CUs who need to put  a more competitive product out there.
  2. Take care of our own; instead of going outside the industry/movement, we are big enough to pull off our own big things.  Keep the money inside the cooperative.
  3. Operating efficiency for CU processes and across the geographically dispersed network.
  4. We have reference points of success in this – eOriginal and MERS.  As Vic points out, we also likely have a number of other industries experience we could / should draw from – Vic mentioned commodities.  What is innovation for CUs, already is in place outside of CUs.  This gives us a potential playbook.
  5. This is a huge market.  If done right, could be a critical piece inside of CUs market done by cooperative.
  6. eDoc already has pieces of this on the ground.  And a long history of secure, high avail images.
  7. It may be the future requirement of liquidity providers – eNote, eVault.


  1. eOriginal is way out front.  The pro of a referenceable model out there is also a con.  They raised $26m in 2016.  They have partnered with at least 13 point solution vendors to create the end-to-end paperless mortage.  Hard to envision catching them.
  2. Crawl, walk run may be day late, dollar short.
  3. Could be expensive to get into this market.
  4. Missing information about potential business models; would be good to have a SWAG at some numbers for the P&L.  Absent that, I struggle to put a value on the opportunity and, hence, what the cost of build might need to be..

Questions that occur to me:

  1. BusDev:  To get to the end-to-end eNote / electronic mortgage, seems eOriginal strategy was to build a base product (“Digital Mortgage Platform”), then partner for all the key “skills” or technologies needed to complete the process.  Is it worth or have we done some exploratory conversations with firms like (e.g.) eNotaries or any of the other main pieces?  eOriginal provides the framework, stitches together the other parts and boom.
  2. Market Size:  I get the extrapolation of the market size today; 65% of loan volume in DTM.  That number seems high as a predictor of paperless mortgage (one of the BHAGs in end state).   Could we do a bit more on sizing the market?
  3. Build from Front End:  Sofi put a ton of loans on the books even in just the first two years.  Jon Jeffries of Callahan did some research.  If memory serves, Sofi didn’t win because of great rates or even fancy back office systems.  The won because they were cool looking and frictionless on the front end human experience (that may be my conclusion, not Jon’s.  Don’t have my notes here.)  The broader point is… could we spend more time understanding the consumer experience?  And build back to “what is everything we need to do end to end?”
  4. RocketMortgage:  Can we get any kind of volume metric on how this market is building for Quicken?
  5. Are there any large CUs that are working with eOriginal?  Navy?  Other?  Would be great to get a bit more inside the story; see what is there.
  6. I agree that we are all very very very small as compared to the very large.  However, I have found that, if we articulate the full scope of the CU system, even the bigger vendors see value as long as we can provide them a point of aggregation.  Not easy at all.  And may hit more No’s than Yes’s.  But possible I think.   The network approach seems perfect.  Start with several of the larger networks (Vizo, CU*ANSWERS, eDoc, etc) as the place to get started.  But sell the other vendors on the totality of the CU footprint.  “Million consumers” and the like.  This assumes that your vision is to be the eVault, eNote network for the whole CU system???

Feedback from

John Beauchamp

My feedback is essentially a critical approach to us building this. If I can’t get it by me, how will I get it by a credit union we’re asking to put millions of dollars into this and if it fails they potentially could have no recourse to sell their assets. So a little hard on “us” and innovators.

  • I think the time for a conversation is appropriate.
  • I agree with Peter on the surface, reinventing the wheel might not be the best, who might we partner with? Think about our path with DocuSign / Sertifi. Build vs. Buy vs. partner – Is build the right choice? Why not partner or buy to learn first?
  • I may have missed it, but are you suggesting building an eVault that contains documents compliant with MISMO and registered in MERS or are you suggesting building a competing product with MERS? I think the prior is feasible, the latter not so much. Either way, I think you hit the nail on the head with trust. We are trying to build trust relationships. That in mind the whole point of this exercise is to have assets in a trusted repository so if the owner choses to make those liquid they can sell the assets and others trust them as being valuable and worth what they claim them to be and they now hold the paper. Which brings me to… why would anyone trust eDOC in the market place at large? Unlike x9.37 that is a standard and if you code to it, and comply with it you’re in, and there’s an easy, established process for rejecting items submitted that you wish not to accept downstream. With this it’s much more loose and widely misunderstood I’m concerned this just isn’t mature enough. So back to, how would we build a trust that well… is trusted by the market? I get the business of why, money to be made etc. but how do we establish this eVault as “trusted” beyond Bret’s good with it? Is there a certification process I’m unaware of to put the seal of approval on your eVault as Trusted?
  • So if we succeed in building a trusted vault, how do you overcome electronic registration of deeds and eNotaries? eNotaries easier to overcome than registration though more and more accepting deeds electronically all the time but not a 100% solution yet.

Will add one more thing…

  • Also like Vic’s thought on how are other vertical markets trading documents of value and knowing they are valid? i.e. stock exchange etc.

Feedback from

Randy Karnes

  • Can we identify every registry in US easily?
  • Can we identify the branded tech solutions they use today?
  • What is the going rate for registry solutions today?
  • If we created a trust registry, what else might we use it for?
  • What the cost of build might need to be?