Vital Step Taken Toward Mortgage Digitization
After a 30-year monopoly, mortgage documents of a large number of Canadians will be shared between two companies, and they will be digitized.
CHMC are documented by a third-party provider, Computer Share Inc. which is owned by an Australian. As from now on, mortgage lenders won’t have any business to do with CST Trust Company that is based in Canada.
There are other offices in Vancouver, Montreal, Toronto, and Calgary owned by the firm. A go-ahead was given earlier this month for the firm to be a National Housing Act Mortgage-Backed Securities (NHA MBS) custodian and title custodian.
A virtual registry of Canadian mortgages will be set up to keep track helpful ownership of each mortgage from its initial stage via its sale to succeeding securitization and investors. This will help provide important information that will be easy to search and be accessible to investors, issuers, and originators at any time. It is also a vital means of making the mortgage origination process more efficient.
Senior Vice President at CST, Mr. Turzanski said; “CST is poised to reinvent the process of mortgage custody in Canada, using proprietary technology to create efficiencies in a market that has long been bogged down by paperwork and manual processes. Our goal is to move beyond the physical document storage system that currently exists and advance the market towards an ‘e-signature’ model. Issuers, originators and investors alike will benefit from increased efficiency and reduced risk.”