JPMorgan Chase's warehouse lending unit accepting eNotes
JPMorgan Chase is now accepting electronic promissory notes as collateral to fund warehouse loans, the company said.
The move comes at a time when the mortgage industry continues to embrace digital. Chase is creating initiatives to save time and money for mortgage companies, while improving data quality and security. The use of e-notes will cut costs by weeding out paper, shipping and storage fees.
"Consumers are tech savvy and looking for digital options that simplify the mortgage experience," Thanh Roettele, head of the Corporate Client Banking and Specialized Industries Mortgage group, said in a press release. "This is where the industry is headed and we're meeting our clients' needs to help save them time, while providing convenience to their customers."
CCBSI Mortgage works in conjunction with the bank's other lines of business, including Chase Home Lending.
Wells launched an e-note program toward the end of 2018, with the help of fintech eOriginal, allowing the bank to purchase e-notes through its correspondent channel, Wells Fargo Funding. The program is expected to be rolled out more broadly throughout this year.
Quicken began closing mortgages with e-notes in October 2017, which helped the number of e-notes added to the MERS eRegistry in the first quarter soar. The 19,000 added to the eRegistry in the first quarter surpassed the amount of e-notes added for all of last year; only 375 were added in last year's first quarter and 17,000 e-notes were added throughout all of 2018.