- When do you expect FHLB Des Moines to allow electronic signatures on notes on eligible pledged collateral?
- Does the Bank have any plans to lift the restriction for wet signatures on Notes in the near future?
- Why do wet signatures continue to be required in today's environment when technology has evolved to use of electronic signatures and they are considered legally binding by many states?
FHLB Des Moines continues to work diligently on the eNotes project. As a secured lender, we have one more layer beyond enforceability, or legally binding, to consider. We have to ensure the collateral pledged is also a transferable record and meets the requirements laid out under the federal Electronic Signatures in Global and National Commerce Act (E-Sign) and state Uniform Electronic Transfer Act (UETA) laws. In the paper note world, there is just one true copy evidenced by the wet-ink signature. In the electronic world, that one true copy, known as the “Authoritative Copy”, is evidenced by the “location” of the eVault in the Mortgage Electronic Registration Systems, Inc.® (MERS®) eRegistry, the system of record for eNotes.
We have a page dedicated to eNotes under the Collateral section of our web site. There you will find the requirements, as well as other valuable eNote resources. We are on target to accept 1-4 Family Residential eNotes that meet the posted requirements in the second half of 2020.
"MERS®" is a registered trademark of MERSCORP Holdings, Inc.