Going Digital with the MPF® Program

Going Digital with the MPF® Program
How Our Bank Combined the Innovation of eNotes with the Benefits of the Mortgage Partnership Finance® Program
by Tim Schinkten, AVP – Loan Servicing Manager, Nicolet National Bank

Nicolet National Bank has seen incredible growth over the last 24 years—from a startup in 2000 to the second-largest bank headquartered in Wisconsin today, with $8.5 billion in assets and close to a thousand employees serving more than 50 communities near our Green Bay headquarters. Mortgage solutions have been an important part of our success story, and we’ve been selling loans through the Mortgage Partnership Finance (MPF) Program for over a decade, building on our longstanding partnership with the Federal Home Loan Bank of Chicago. So, when we had the opportunity to become one of the first institutions to sell loans originated as eNotes/eMortgages into the MPF Program, we jumped. We’d had previous experience with eNotes and were excited to combine the efficiency they offered with the competitive prices and exceptional service we relied on from the MPF Program.

We Spent Time Preparing for Success
Our team knew it would take time to set up and test our systems before we could start selling eNotes mortgages into the MPF Program. Nicolet carefully chose from the approved technology solution partners for our eVault, eClosing, and other systems to ensure compatibility. Before we took our systems live, we tested them thoroughly to confirm the eNotes were being transferred appropriately, timely, and securely. And throughout this process, we maintained open lines of communication with our technology solution providers and especially our partners at the MPF Program. MPF staff have been there every step of the way, always available to guide us, answer our questions, and help us and our technology partners troubleshoot any issues quickly and easily.

The Effort Was 100% Worth It
Nicolet now sells eNotes mortgages through both the MPF Traditional and MPF Xtra® products, and that initial preparation has yielded tremendous gains in efficiency and customer experience:

Operational Efficiencies. For our closers, using eNotes makes it quicker and easier to get loan documents drawn up and sent out. Our loan funding and post-closing teams love having one less document that they need to wait to be physically returned. From a sales standpoint, we know we can deliver eNote loans to the MPF Program in much less time than it takes to wait for the title company to send a “wet sign” note and then physically mail it to the MPF Program. Couriers can be quick, but eNotes are instant—and that means loans are funded much more quickly, too.

Convenience for the Customer. With eNotes, our clients love being able to sign virtually all of their documents electronically—often ahead of their closings. Our technology solution partners allow customers to electronically sign their eligible documents any time after midnight on the day of closing, so they can arrive at the title company with just a few papers left to sign; it’s one less thing to worry about on the day. And because our technology partners are carefully vetted and approved, borrowers can rest assured that their documents are stored and transmitted securely.

The Future of Mortgages Is Digital
Currently, over 95% of the loans in Nicolet’s active pipeline were initiated electronically by the customer filling out their application online, and roughly 80% of our eligible mortgage loans use eNotes. We still write mortgages the old-fashioned way, when necessary, but digital processes have become integral to our regular business practices. Now that lenders can enjoy the advantages of the MPF Program with the efficiency of eNotes, there’s no reason to go back.