Real-Time Collateral Tracking: How eVaults Reduce Haircuts and Capital Costs

In today’s liquidity-driven mortgage market, lenders can no longer afford slow, manual, paper-based collateral management. Warehouse lenders, investors, and securitizers increasingly prefer assets that can be verified, validated, and transferred digitally, without delays or uncertainty.
This is exactly where eVaults—the digital systems that store, protect, and track eNotes—change the economics of lending.

Why Real-Time Collateral Tracking Matters

Collateral verification used to be slow and opaque. With paper notes, warehouse lenders often faced:

• Delays in shipping collateral

• Risk of lost or damaged notes

• Uncertainty about chain of custody

• Manual validation taking days

• Higher perceived asset risk

Because of this uncertainty, lenders received larger haircuts—meaning they got less borrowing power for the same pool of loans. That directly increased capital costs.

How eVaults Solve the Problem

An eVault creates a single, authoritative, tamper-proof digital version of the promissory note. More importantly, it monitors every event in real time—status, transfers, pledges, releases, and audit trails.

1. Instant Asset Certainty

Warehouse lenders can confirm:

• The note is valid

• The note is unique

• The lender truly owns it

• The note has not been altered

• The chain of custody is fully documented

This transparency reduces perceived risk, allowing warehouse lenders to lower haircuts.

2. Real-Time Status Updates

Every collateral event—delivery, acceptance, pledge, release—happens instantly inside the eVault.
No need to wait for overnight batches, document shipping, or manual reconciliation.

This keeps capital turning faster and reduces dwell time in warehouse lines.

3. Faster Funding and Lower Carry Costs

Because an investor or warehouse bank can verify the asset immediately:

• Funding turn times shrink

• Interest expense (carry cost) drops

• Capital utilization improves

For lenders operating on thin margins, this efficiency is critical.

4. Better Liquidity on the Secondary Market

eNotes stored in eVaults are easier to:

• Transfer

• Certify

• Pool

• Sell or pledge

• Move into securitizations

Investors trust assets with clear digital provenance, which improves liquidity and reduces discounting.

5. Automated Compliance and Reduced Operational Risk

Every action on the note is logged automatically.
This dramatically cuts:

• Custody errors

• Missing documents

• Manual data mismatches

• Shipping failures

Reduced operational risk = reduced capital cost.

Bottom Line

Real-time collateral tracking through eVaults doesn’t just make mortgages digital—it fundamentally changes the economics of capital.
By providing instant asset certainty and eliminating manual friction, eVaults lower haircuts, reduce funding costs, and increase liquidity across the entire mortgage cycle.