Truliant Federal Credit Union is the first Southeast financial institution to officially complete a transfer of an eNote – or an electronic promissory note – to Federal Home Loan Bank of Atlanta (FHLBank Atlanta), as part of FHLBank Atlanta’s eNote pilot program, the lender said Tuesday.
Going forward, FHLBank Atlanta will accept all eNotes, per bank officials.
An eNote is a digital version of the promissory note which must meet the requirements of electronic transaction laws. eNotes contain the same information as a traditional mortgage note – on paper – but they are created, signed and stored digitally.
FHLBank Atlanta used the eNote transfer to test the infrastructure necessary to allow a limited number of FHLBank members to report eNotes as collateral. Truliant, which serves more than 270,000 members and over 30 member financial centers in North Carolina, South Carolina, and Virginia, met a series of standards relating to eSignatures, eNote documentation, eClosings, eRegistry requirements, and eNote vault requirements, said Todd Hall, Truliant president and CEO.
“This final digital step makes the whole home-buying experience quicker, more accurate and secure,” Hall said. “Truliant completed its first end-to-end eClosing on March 27 last year. One year later we are the first member to deliver an eNote to FHLBank Atlanta.”