Snapdocs, BNY partner on touchless mortgage collateral delivery for secondary market

Snapdocs and BNY are partnering to launch an automated, end-to-end digital mortgage collateral and eCustody solution, the companies announced Thursday. The technology aims to eliminate manual handoffs and create faster execution in the secondary market.

The initiative targets digitization of one of the mortgage industry’s most stubborn bottlenecks: collateral delivery from closing through warehousing and into custody. This process often relies on paper files, scanning and email-based workflows between lenders, settlement agents, warehouse banks and custodians.

By combining BNY’s document custody and structured finance capabilities with Snapdocs’ digital closing platform, eVault and document intelligence tools, the firms say they will provide a single connected infrastructure for secure, “touchless” collateral movement across the secondary mortgage market.

Johnny Wijaya, head of structured finance and document custody solutions at BNY, said the bank is investing in infrastructure that supports faster, more transparent asset movement as digital collateral reshapes how loans are financed and traded. The collaboration with Snapdocs is positioned to modernize collateral delivery and review, reduce friction and strengthen confidence in asset quality, Wijaya said in a press release.

How the new workflow is designed to function

Under the initiative, BNY’s mortgage clients will gain four core capabilities, according to the companies:

• Purpose-built eVault and eCustody infrastructure: A platform to store and manage both digitally native and imaged mortgage documents, including eNotes, with full auditability to support secure custody.
• Touchless collateral delivery: Automatic digital transfer of collateral from lenders to BNY directly from closing, which replaces fragmented, manual handoffs that can add days to funding and sale timelines.
• Document intelligence: Classification and data extraction tools that automate quality control and certification, support portfolio analytics and enable real-time risk surveillance on collateral pools.
• Expansion beyond mortgage: An eVault architecture that supports mortgage collateral today but is built to extend to non-mortgage asset classes over time, broadening BNY’s eCustody reach.

Camelia Martin, vice president of digital collateral strategy and partnerships at Snapdocs, said mortgage collateral management remains one of the most expensive and risk-prone processes in the business and one of the least digitized.

Integrating Snapdocs’ eCustody and document intelligence with BNY’s custody capabilities will create the kind of digital infrastructure the market has lacked, enabling faster asset movement with better data visibility and fewer operational constraints, Martin said.

Why this matters for lenders, warehouse banks and investors

For BNY’s lender clients, the platform is intended to support delivery of eNotes and the bulk of the collateral package digitally, whether executed as eSigned documents or scanned wet-ink files. This allows most collateral to flow directly from point of execution to custodian, with integrity checks and chain-of-custody tracking at each step.

Replacing physical shipping, manual scanning and spreadsheet-based reconciliations with automated validations and an immutable audit trail can shorten cycle times, cut per-loan operational costs and improve pull-through to the secondary market. Faster, more predictable collateral certification can support better warehouse line turns, reduce dwell time on balance sheets, and improve execution on whole loan sales and securitizations.

Warehouse banks and investors using BNY’s eCustody services could gain real-time visibility into collateral data and delivery status, as well as a more standardized and competitive loan acquisition process that aligns with growing lender demand for digital collateral acceptance.

For housing professionals, the move underscores a broader shift. As more investors, agencies and warehouse lenders accept eNotes and digital collateral, the economics increasingly favor lenders that can originate, perfect and deliver loans electronically with minimal manual intervention.

This article was generated using HousingWire Automation and reviewed by a HousingWire editor before publication. The system helps convert company announcements and industry data into HousingWire-style news coverage.