QRL Financial Services, the mortgage outsourcing division of First Federal Bank of Florida, will begin purchasing electronic notes from its correspondent clients.
The Madison, Wis.-based business, which provides community banks and credit unions with origination and servicing fulfillment, as well as investor services, expects the move will make secondary market execution faster and provide a better experience for lenders and borrowers.
“QRL’s ability to purchase and service e-notes will allow the credit unions and community banks that we service to stay ahead of the technology curve as they compete with the larger institutions in the race to improve the mortgage experience,” Alex Rivera, a QRL managing director, said in a press release.
QRL will use electronic document and e-vault technology provided by DocMagic to facilitate the new capabilities.
While both Fannie Mae and Freddie Mac both buy e-notes, correspondent investors have been slow to adopt the technology. Wells Fargo, the largest correspondent aggregator, recently announced plans to buy mortgages originated with e-notes, while smaller players like Mid America Mortgage have also taken on e-note strategies in the correspondent channel in recent years.
Lenders named investor acceptance issues among their top concerns for using electronic notes in a joint Fannie Mae and Freddie Mac study conducted in 2016. And as the industry continues to make progress with digital mortgage efforts, the correspondent channel is beginning to evolve. The Money Source recently announced its partnership with Ellie Mae to provide correspondent lenders digital delivery and acceptance capabilities for loan data and documents.