March 1, 2022 – Colorado Housing and Finance Authority (CHFA) has become the first FHLBank Topeka member or housing associate to name FHLBank Topeka as a secured party and identify the location of the authoritative copy of the electronic promissory note (eNote) to be the FHLBank Topeka eVault on the MERS® eRegistry. The transaction was completed Feb. 28, 2022. The MERS® eRegistry is the mortgage industry’s authorized registry that identifies the current controller (holder) and location (custodian) of the authoritative copy of an eNote.
An eNote is an electronic record that is the legal equivalent to a paper 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. CHFA met a series of operational requirements to get to this point. These requirements are in line with the standards outlined 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.
CHFA’s mission is to strengthen Colorado by investing in affordable housing and community development. In 2021, CHFA became the first state housing finance agency in the nation to electronically accept, purchase and deliver an electronic mortgage note. CHFA began this initiative to improve its mortgage process by increasing efficiencies and providing faster funding of loans delivered by CHFA participating lenders.
“As a cooperative, meeting the needs of our members is our top priority. Our members have continued to express 
interest in pledging eNotes as collateral,” said Lance Liby, chief credit officer at FHLBank Topeka. “This transaction is an important step that paves the way for other members. We appreciate CHFA working with us on this inaugural transfer.”
