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FHLBank Atlanta and Truliant Announce Transfer of First Mortgage eNote

Truliant FCU, first to complete a transfer of an electronic promissory noteATLANTA (April 6, 2021) — Federal Home Loan Bank of Atlanta (FHLBank Atlanta) and Truliant Federal Credit Union (Truliant) announced today that Truliant has become the first financial institution in the Southeast to complete a transfer of an electronic promissory note (eNote) to FHLBank Atlanta. The digital transaction was completed March 26 during a video conference call using Truliant’s DocMagic eVault and the Mortgage Electronic Registration Systems (MERS) eDelivery system.

The transfer was completed as part of FHLBank Atlanta’s eNote pilot program, which is intended to test the infrastructure necessary to allow a limited number of FHLBank Atlanta members to report eNotes as collateral. eNotes contain the same information as a traditional mortgage paper note, but they are created, signed, and stored digitally within an eVault with a tamper-seal to secure and authenticate the document.

In order for the transfer to be effective, Truliant met a series of standards relating to eSignatures, eNote documentation, eClosings, eRegistry requirements, eNote vault requirements, and servicing system requirements. These standards reflect the set of core requirements published 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 necessary to allow their individual members to pledge eNotes and they are in various stages of accepting eNotes as collateral. The transfer of Truliant’s first eNote marks the launch of FHLBank Atlanta’s pilot program for accepting eNotes.

“This is the culmination of years of work by the state of North Carolina, FHLBank Atlanta and a dedicated team at Truliant,” said Todd Hall, President and CEO of Truliant. “Truliant completed its first end-to-end eClosing on March 27 of last year. So, literally, one year later we are the first member to deliver an eNote to FHLBank Atlanta. This final digital step makes the whole home-buying experience quicker, more accurate and secure.”

An eNote is a single, unique, unaltered, and digital version of the promissory note which must meet the requirements of electronic transactions laws. eNotes are a product of the rapidly growing mortgage eClosings process, a faster and more secure way for consumers to close their loan. eClosings help lenders streamline workflows, and create efficiency by removing manual steps in the closing process, helping them process loans more quickly.

“The transfer of this eNote is a significant milestone for FHLBank Atlanta,” said Rob Kovach, FHLBank Atlanta’s Chief Credit Officer. “Interest in the ability to pledge eNotes as collateral continues to grow among our members and this initial transfer demonstrates that we now have the ability to meet this growing demand. We appreciate Truliant for partnering with us to complete this transaction and create a path for more members to begin transferring eNotes at the end of our pilot program.”

When a closing is completed, the eNote is tamper-sealed and registered with the MERS eRegistry system, which also indicates the location of the authoritative copy. eNotes cannot be altered without the change being recorded on a digital audit trail, and the note cannot be lost.

About the Federal Home Loan Bank of Atlanta
FHLBank Atlanta offers competitively-priced financing, community development grants, and other banking services to help member financial institutions make affordable home mortgages and provide economic development credit to neighborhoods and communities. The Bank's members—its shareholders and customers—-are commercial banks, credit unions, savings institutions, community development financial institutions, and insurance companies located in Alabama, Florida, Georgia, 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 awarded approximately $6.6 billion in Affordable Housing Program funds, assisting more than 957,000 households. For more information, visit
About Truliant Federal Credit Union Truliant is a mission-driven, not-for-profit financial institution that promises to always have its member-owners’ best interest at heart. It improves lives by providing financial guidance and affordable financial services. Truliant was chartered in 1952 and now serves 270,000+ members. Truliant has more than 30 Member Financial Centers in North Carolina, South Carolina and Virginia.

Contact: Heath Combs 
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(o) 336.293.2054 (c) 336.442.5736