FHLBank Atlanta and Truliant Federal Credit Union Announce Transfer of First Mortgage eNote
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ATLANTA, April 06, 2021 (GLOBE NEWSWIRE) – The Federal Home Loan Bank of Atlanta (FHLBank Atlanta) and Truliant Federal Credit Union (Truliant) today announced that Truliant has become the first financial institution in the Southeast to complete a transfer of a promissory note (eNote) to FHLBank Atlanta. The digital transaction was completed on March 26 during a video conference using Truliant’s DocMagic eVault and Electronic Mortgage Registration Systems (MERS) electronic delivery system.
The transfer was made as part of FHLBank Atlanta’s eNote pilot program, which aims to test the infrastructure necessary to allow a limited number of FHLBank Atlanta members to claim eNotes as collateral. Electronic notes contain the same information as a traditional paper mortgage note, but are created, signed and digitally stored in an electronic safe with a tamper-evident seal to secure and authenticate the document. In order for the transfer to be effective, Truliant followed a series of standards relating to electronic signatures, eNote documentation, electronic closings, electronic ledger requirements, eNote vault requirements, and maintenance system requirements. These standards reflect all basic requirements released by the 11 Federal Home Loan Banks in early 2020. Since 2017, the Federal Home Loan Banks have been working together to develop the many components needed to enable their individual members to pledge eNotes and they are in various stages of development. acceptance of eNotes as a guarantee. The transfer of Truliant’s first eNote marks the launch of FHLBank Atlanta’s pilot program for eNotes acceptance.
“The transfer of this electronic note is an important step for FHLBank Atlanta,” said Rob Kovach, Credit Manager for FHLBank Atlanta. “Interest in the possibility of pledging eNotes as collateral continues to grow among our members and this initial transfer demonstrates that we now have the capacity to meet this growing demand. We appreciate Truliant for partnering with us to complete this transaction and create a path for more members to start transferring eNotes at the end of our pilot program.
An electronic note is a unique, unique, unmodified, digital version of the promissory note that must meet the requirements of electronic transactions laws. Electronic Notes are the product of the rapidly growing electronic mortgage loan closing process, a faster and safer way for consumers to close their loans. Electronic closings help lenders streamline workflows and gain efficiency by removing manual steps from the closing process, helping them process loans faster.
“This is the culmination of years of hard work by the State of North Carolina, FHLBank Atlanta and a dedicated team at Truliant,” said Todd Hall, President and Chief Executive Officer. direction of Truliant. “Truliant completed its first end-to-end electronic fence on March 27 of last year. So, literally, a year later, we are the first member to provide an electronic note to FHLBank Atlanta. This final digital step makes the whole home buying experience faster, more accurate and safer.
When a fence is complete, the electronic note is sealed and recorded in the MERS eRegistry system, which also indicates the location of the authoritative copy. ENotes cannot be edited without the change being recorded on a digital audit trail, and the note cannot be lost.
About the Federal Home Loan Bank of AtlantaFHLBank Atlanta offers competitively priced finance, community development grants, and other banking services to help member financial institutions secure affordable mortgages and provide economic development credit to neighborhoods and communities. The members of the Bank – its shareholders and customers – are commercial banks, credit unions, savings institutions, community development financial institutions, and insurance companies located in Alabama, Florida, Georgia, in Maryland, North Carolina, South Carolina, Virginia and the District of Columbia. . FHLBank Atlanta is one of 11 district banks in the Federal Home Loan Bank System. Since 1990, the FHLBanks have provided approximately $ 6.6 billion in Affordable Housing Program funds, helping more than 957,000 households.
For more information, visit our website at www.fhlbatl.com.
About Truliant Federal Credit UnionTruliant is a mission-driven, non-profit financial institution that promises to always have the best interests of its member-owners at heart. It improves lives by providing financial advice and affordable financial services. Truliant was established in 1952 and now has over 270,000 members. Truliant has more than 30 member financial centers in North Carolina, South Carolina and Virginia.
CONTACT: Peter E. Garuccio Federal Mortgage Bank of Atlantapgaruccio@fhlbatl.com 404.888.8143
Source: Federal Home Loan Bank of Atlanta