Electronically Signed PDFs

1
Electronically Signed PDFs

• Diana Helander, Adobe Systems
• Igor Derensteyn, Countrywide Financial
• PRIA Winter Conference
• Washington DC
• 3/2/07

2
Agenda

• Background
• PDF Intelligent Document Overview
• MISMO update eSigned PDF guidance document
• Whats Next?

3
The Intelligent Document
PDF Presentation precise form and layout standards
XML Data Standards UNeDocs, MISMO, ACORD
View - Data Mapping - Validation Security
Electronic Signatures (Identrust, SAFE, FPKI)
4
PDF As A Standard

• Published publicly available PDF specification
• Combines PDF with XML industry standards
• ISO PDF Standards that address specialized needs
  are already available
• PDF/A Reliable file format for archiving and
  preservation
• PDF/X Predictable printing of digital files
  anywhere in the world
• PDF/E (proposed) Exchange of complex technical
  documents for architecture, engineering,
  construction, manufacturing, and geospatial
  industries
• PDF/UA (proposed) Defines the attributes of PDF
  files to enhance their ability to work in
  conjunction with assistive technologies
• Public information available at AIIM
• www.aiim.org/standards

5
PDF Benefits

• Benefits
• Simplifies development and deployment of
  standards-based applications
• Extends standards beyond business and industry
  boundaries
• PDF can be the bridge across industry and
  line-of-business domains
• Secure container that can also leverage industry
  security and authenticity standards
• Examples
• MISMO, PISCES, PRIA,
• ACORD, ORIGO - Insurance standards
• UBL, OAGIS, UN eDocs - ebXML CCTS-based b2b
  standards
• RosettaNet - Manufacturing
• XBRL - Financial reporting
• Government US Courts, NARA, FDA, US Customs,
  UN/CEFACT

6
New Adobe Releases PDF to ISO

• PDF 1.7 will be released to AIIM for ISO
  submission (announced Jan 29, 2007)
• Natural outcome of standards efforts
• Expected ratification of ISO standard in 12-30
  months
• Resulting standard will be product of working
  group

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eMortgage eSignatures

• Variety of esignatures
• Click-wrap
• Signature capture
• Biometrics
• Certificates/PKI
• eVault/electronic originals

• Benefits for eMortgage
• Enable full eMortgage workflow
• Can provide authentication and auditable trail
  (particularly for compliance/legal purposes)

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eSigned PDF Guidelines and Demo

• Igor Derensteyn
• Countrywide Financial

9
Topics

• Evolution
• Electronic Documents
• PDF Format
• eSigned PDF Guidelines
• eSigned PDF Demo
• Conclusion

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From Paper to Imaging to eMortgages

• Today Electronic documents generation,
  delivery, and imaging.
• Still need to print the documents for signatures
  and then image them.
• Tomorrow From Imaging to eMortgages using XML
  and eSigned Docs.
• The documents are created electronically,
  executed electronically, transferred
  electronically and ultimately stored
  electronically. AKA the paperless mortgage.
• Bottom Line Great savings today and much more
  potential savings tomorrow.

Today
Tomorrow
Yesterday
eMortgages
Paper
Scanning / OCR
eDocs
Faxing
Delivery
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eDocs Electronic Documents

• An electronic document (eDoc) functions as an
  equivalent to a paper document. It also
  eliminates the need for printing.
• Paperless environment has been a key driver for
  the evolution of the eDocs formats from imaging
  to the electronic records.
• Legislatively, ESIGN and UETA similarly define an
  electronic record as a record created,
  generated, sent, communicated, received, or
  stored by electronic means.

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PDF Format Evolutional Approach
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MISMO eSigned PDF Guidelines

• MISMO eSigned PDF Guide providing voluntary
  guidelines to standardize PDF mortgage documents.
• The guide provides direction for the use of PDF
  for electronic mortgage documents, including
  those that contain electronic signatures.
• Legal considerations
• Guidelines
• General format structure
• Electronic Signatures
• Digital Seals
• Open Source
• Data, Signatures, other.

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Why Create a Guidance Document?

• Why?
• PDF specification includes rich features and
  flexibility that may not lend themselves to
  mortgage document types and/or reliable
  preservation or high-validity requirements
• Existing similar PDF standards do not address all
  eMortgage requirements (PDF/A)
• Consistency of PDF usage in the mortgage industry
• Better interoperability among document producers
• Baselines for acceptable usage control file
  sizes, attachment types, versions
• Security usage guidance encryption, signatures
• Participants included
• Adobe, Buckley Kolar, Countrywide, eLynx, Fannie
  Mae, Freddie Mac, First American, First Magnus,
  InterLink Electronics, MERS, National Notary
  Assn., NetBank, Peirson Patterson, PRIA, Stewart
  Title, Wells Fargo

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eSigned PDF Documents
Electronic Record
Electronic Vault
eSigning
Tamper-Evident Seal Signature Value (Digital
Fingerprint )
16
A sample eSecurityInstrument process
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eSI Demo Step 1 - DocPrep
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eSI Demo Step 2 - eSign
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eSI Demo Step 3 - eRecord
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Conclusion

• Electronically signed documents reduces paper,
  time, and cost. The cost savings can be achieved
  incrementally.
• There will also be a continuous transition to
  paperless mortgages over the next 5 to 10 years.
• During the transition, lenders are most likely to
  continue leveraging existing de-facto standards
  for electronically signed documents.

Today
Tomorrow
Yesterday
eMortgages
Paper
Scanning / OCR
eDocs
Faxing
Delivery
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Disclaimer

• This Presentation contains forward-looking
  statements within the meaning of Section 21E of
  the
• Securities Exchange Act of 1934, as amended,
  regarding management's beliefs, estimates,
• projections, and assumptions with respect to,
  among other things, the Companys future
• operations, business plans and strategies, as
  well as industry and market conditions, all of
  which
• are subject to change. Actual results and
  operations for any future period may vary
  materially
• from those projected herein and from past results
  discussed herein. Factors which could cause
• actual results to differ materially from
  historical results or those anticipated include,
  but are not
• limited to competitive and general economic
  conditions in each of our business segments
• changes in general business, economic, market and
  political conditions in the United States and
• abroad from those expected loss of investment
  grade rating that may result in an increase in
  the
• cost of debt or loss of access to corporate debt
  markets reduction in government support of
• homeownership the level and volatility of
  interest rates changes in interest rate paths
  changes
• in generally accepted accounting principles or in
  the legal, regulatory and legislative
• environments in the markets in which the Company
  operates the ability of management to
• effectively implement the Companys strategies
  and other risks noted in documents filed by the
• Company with the Securities and Exchange
  Commission from time to time. Words like
  believe,
• expect, anticipate, promise, plan, and
  other expressions or words of similar meanings,
  as
• well as future or conditional verbs such as
  will, would, should, could, or may are
• generally intended to identify forward-looking
  statements. The Company undertakes no

22
Thank You!

• Diana Helander, Adobe
• helander_at_adobe.com
• Igor Derensteyn, Countrywide
• Igor_derensteyn_at_countrywide.com