September 19, 2021

MP Now News

Mortgage News

Two Southern banks complete mortgage eNote transfer

Truliant Federal Credit Union is the first financial institution in the Southeast to officially complete a transfer of an eNote – or electronic promissory note – to Federal Home Loan Bank of Atlanta (FHLBank Atlanta), the lender said Tuesday as part of FHLBank Atlanta’s eNote pilot program.

In the future, FHLBank Atlanta will accept all eNotes per bank employee.

An eNote is one digital version the promissory note, which must meet the requirements of the laws on electronic transactions. eNotes contain The same information as a traditional mortgage certificate – on paper – is digitally created, signed and stored.

FHLBank Atlanta used the eNote broadcast to test the infrastructure required for a limited number of FHLBank members to report eNotes as collateral. Truliant, which serves more than 270,000 members and over 30 financial centers in North Carolina, South Carolina, and Virginia, has met a number of standards for eSignatures, eNote documentation, eClosings, eRegistry requirements, and eNote vault requirements, said Todd Hall. Truliant President and CEO.

“This final digital step makes the entire shopping experience faster, more accurate and safer,” said Hall. “Truliant completed its first end-to-end eClosing on March 27th last year. A year later, we are the first member to deliver an eNote to FHLBank Atlanta. “

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North Carolina Secretary of State Elaine Marshall described it as “win-win-win for home buyers, the corporate and government sectors, making the mortgage closing process less time-consuming, less stressful, and even more secure.”

When a deal is completed, the eNote is tamper-evident and registered with the MERS eRegistry system. eNotes cannot be changed without the change being recorded on a digital audit trail, said Rob Kovach, chief credit officer of FHLBank Atlanta.

“Interest in the ability to mortgage eNotes as collateral continues to grow among our members, and this initial broadcast shows that we are now able to meet that growing demand,” said Kovach.

According to official information, 11 federal housing loan banks set the requirements for the service system with regard to eSignatures and eNote documentation at the beginning of 2020 – the culmination of a three-year development phase.

Full e-closings reduce paper consumption, legal costs, shipping and courier costs.

“EClosings are part of an evolving program we launched to increase our competitiveness, accommodate more members in their homes, and enable them to complete purchases on their schedule,” said Beth Eller, vice president of mortgage lending for Truliant.

In 2019, Truliant announced that it will be the first North Carolina Credit Union to offer full eClosing services for mortgages and the second North Carolina-based financial institution to use them. Truliant announced this in May 2020 Freddie Mac would buy Truliant eNotes as collateral for mortgage-backed securities.

Truliant received approval in May to offer support for “decommissioning funds” Federal Home Loan Savings Bank of Atlanta. The funds allow for distribution to first-time buyers of up to $ 5,000, up to $ 7,500 for first-time home buyers who are current or retired law enforcement officers, educators, firefighters, and healthcare workers, and up to $ 10,000 if first available or non-first-time seasoned homebuyers currently operating overseas or serving in an overseas military intervention – or their surviving spouse.