eNotes as Collateral at FHLBank Chicago
Since August 2020, FHLBank Chicago has accepted 1-4 family residential mortgage eNotes (Electronic Promissory Notes) as collateral.
Our FHLBank Chicago members can find everything they need here in order to begin pledging eNotes, find helpful resources, and get answers to frequently asked questions.
As your Illinois and Wisconsin FHLBank, we want to make sure we can provide liquidity and funding to all our members, in all economic environments, when you need it. We also need to navigate our own set of regulations and safeguards to protect the cooperative and the capital you have invested in us. With those considerations in mind, we have rolled out the eNote Acceptance Requirements and Guidelines, which defines acceptance criteria for 1-4 family loans executed with an eNote.
eNotes 101 and Benefits
What is an eNote?
|What is an eNote?||What is not an eNote?|
|A promissory note that is originated, signed and stored electronically according to the standards for a “transferable record” pursuant to the Uniform Electronic Transaction Act (“UETA”) and the Electronic Signatures in Global and National Commerce Act (“ESIGN”). An authoritative electronic copy of the note exists in a file format known as a MISMO SMARTDoc and is registered with an eRegistry and stored in an eVault.||An electronic copy of a note signed using an electronic signature (eSignature) or device that simply affixes an image of a signature onto a document. An eNote is also not an image or copy of a wet signed document.|
FHLBank Chicago members can voluntarily leverage an innovative technology to remain competitive, automate origination processes, strengthen compliance and documentation audit trails, and potentially reduce operational costs in the longer-term.
eNotes offer other business, membership, and compliance benefits:
- Completely digital, virtual, and faster funding experience
- Automated signing process with borrowers not physically present for origination or closing
- Time efficiencies gained that could lead to reduced origination and servicing costs
- No physical loan file delivery required to receive collateral value with FHLBank Chicago
eNotes Resources and Materials
Watch Our Latest eNotes and Collateral Update Webinar
eNotes Frequently Asked Questions
We want to hear from you! Whether you are new to eNotes or have already implemented a solution at your institution, let’s discuss how we can support your institution’s goals. For more information and questions, please reach out to our eNotes leads, Sam Reindl, Collateral Operations and Reporting, at 312.552.2620 or firstname.lastname@example.org; or Eileen Crane, Collateral Policy and Compliance, at 312.565.3333 or email@example.com. They will work with your Sales Director to answer your questions and find the solutions your organization needs.