ST. LOUIS–Together Credit Union has become the first financial institution in the district served by the Federal Home Loan Bank of Des Moines to complete an eNote transaction.
FHLB Des Moines said the credit union named the bank as a secured party and was first to identify the location of the authoritative copy of the eNote to be the FHLB Des Moines eVault of an electronic promissory note (eNote) registered on the MERS eRegistry.
The Missouri-based Together CU, a member of FHLB Des Moines, completed its digital transaction earlier this year using the eVault and the MERS eDelivery system.
“We are thrilled to have achieved this significant milestone, both as an institution and as a member of FHLB Des Moines,” said Larry Jackson, vice president of real estate lending at Together Credit Union. “The entire process was seamless thanks to our partnership with FHLB Des Moines, as well as the excellent guidance from MERSCORP Holdings, Inc. (MERS) and our eVault provider. In addition, we were the first financial institution in Missouri to complete an eMortgage. We see a lot of promise with this process for the future.”
‘Historic Time’
While Together Credit Union operates out of St. Louis, the credit union is a nationwide mortgage lender.
“Last year was a historic time from a mortgage perspective; in fact, it was the highest close volume in the history of our country,” Jackson said in a statement. “This influx of mortgages, compounded with the physical distancing required due to the pandemic, makes these electronic offerings the most sensible, efficient option for our members and us as an institution.”
According to FHLB Des Moines, eNotes contain the same information as a traditional mortgage paper note but are originated and signed electronically and stored within an eVault.
“As a system, we have been working for a long time to establish the requirements so that we can securely accept residential mortgage eNotes as collateral for advances,” said Vonda Renfrow, vice president of collateral at FHLB Des Moines. “In addition, the outstanding support and training from MERS is critical in spreading awareness and education to our members. We are thankful to them for helping us champion this new offering.”
Series of Standards
According to FHLB Des Moines, for the loan to have been originated with an eNote, pledged to the FHLB of Des Moines and registered on the MERS eRegistry naming FHLB of Des Moines as the Secured Party, Together Credit Union met a series of standards relating to eSignatures, eNote documentation, eClosings, MERS eRegistry requirements, eNote vault requirements, and servicing system requirements.
The bank added the standards reflect the set of core requirements published by the 11 Federal Home Loan Banks in early 2020.