Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, today announced that MERSCORP Holdings, Inc. (MERS) has partnered with the Federal Home Loan Bank (FHLBank) System to facilitate use of the MERS® eRegistry by FHLBank member financial institutions wishing to pledge eNotes as collateral. MERS is part of ICE Mortgage Services, which applies technology and high-capacity infrastructure to make the mortgage process more efficient and assist clients in navigating the eMortgage ecosystem.

“The Federal Home Loan Bank system is a critical source of housing finance and community investment liquidity for its member institutions so its acceptance of eNotes as eligible, pledged collateral for its lenders signifies a meaningful shift in investor confidence around digitally executed mortgages,” said Christopher McEntee, president of ICE Mortgage Services. “MERS has long advocated for eMortgage adoption, and we welcome the opportunity to support the Federal Home Loan Banks’ commitment to their member institutions’ digital mortgage efforts.”

The 11 FHLBanks, which serve nearly 6,900 member financial institutions across the country, announced in February they are developing a solution that will pave the way for their members to pledge eNotes as eligible collateral. Each individual FHLBank has its own systems, processes, and policies regarding collateral, and implementation timelines for each FHLBank to begin accepting eNotes varies.

To become eligible to submit eNotes, FHLBank member financial institutions will need to work simultaneously with their respective FHLBank and MERS to execute the necessary legal and operational requirements, implement a compliant eVault, and integrate with the MERS® eRegistry to establish their respective FHLBank as the eligible secured party of eNotes pledged as collateral.

The FHLBanks have been working with MERS to develop a process for their members to register eNotes in the MERS® eRegistry. Several FHLBanks expect integration to be complete in Q3 2020, while the remaining FHLBanks are establishing the necessary infrastructure and expect to be fully integrated in Q4 2020 and continuing into 2021. Additional information can be found on the websites of individual FHLBanks and at https://www.mersinc.org/fhlb.