Construction Loans Accepted as
Collateral
FHLB Des Moines now accepts certain
construction loans as eligible
collateral. FHLB Des Moines has
received regulatory approval from
the Federal Housing Finance Board to
accept non-speculative construction
loans, with permanent financing
commitments, on one-to-four family
properties as eligible collateral.
The
Member Products Policy reflects
the expanded collateral approval
under Section 2.1 - Other Real
Estate Related Collateral. FHLB Des
Moines'
Collateral Procedures also
contain updated information
regarding the operational details
and reporting requirements.
The Bank will require monthly
Borrowing Base Certificate reporting
of the unpaid principal balance for
this category accompanied by a loan
listing. Collateral maintenance
levels will range from 200% to 250%
(equivalent loan-to-value ratios are
50% to 40%) depending upon the
characteristics of the portfolios as
determined by collateral field
review.
In order to pledge the new expanded
collateral, please complete the
Construction Loan form,
C-224 on the
Collateral Forms page.
Instructions and checklists, along
with the new pledging form, are all
available under the “Residential
Housing Secured by Real Estate”
section on the Collateral Forms
page.
Collateral Verification Review
Letters
The 2008 Member Collateral
Verification letters were mailed in
November. The letters notify
members whether they will be
required to have a review of the
collateral pledged to secure
advances and other credit exposures
in the upcoming year. All members
should have received a letter
regardless of the review
requirements for next year. If you
did not receive a letter or would
like additional information, please
contact Marc Johnson at
800.544.3452, ext. 1119 or
mjohnson@fhlbdm.com.
Secured Business and Agri-Business
Lines of Credit as Collateral
Coming Soon
FHLB Des Moines plans to begin
accepting revolving business and
agri-business loans (secured
business and agri-business lines of
credit) as eligible collateral by
the end of the year. More
information will be available
regarding reporting requirements,
collateral maintenance levels and
pledging requirements once
operational details are finalized.
Contact Marc Johnson, 800.544.3452,
ext. 1119 or
mjohnson@fhlbdm.com, for more
information.
Have
You Looked at FHLB Des Moines
Advance Rates Lately?
FHLB Des Moines currently
offers extremely attractive advance
rates as compared to other funding
alternatives in the marketplace.
The continuing deterioration in the
sub-prime mortgage market, the
subsequent concerns over the credit
crunch and investors seeking safety
in quality assets have caused our
members to focus their attention on
reliable funding sources. Such a
shift resulted in an increase in
borrowing from the FHLBank System.
In addition to obvious interest rate
advantages of advance funding, our
members benefit from several
value-added components of their Home
Loan Bank membership:
-
Reliable source of funding –
AAA-rated status
-
Stable source of funding –
75 years of service
-
Funding availability in all
interest rate environments
-
Easy access to liquidity
-
Broad range of advance terms
-
Variety of funding
structures
-
Availability of
option-embedded advances, both
Member-owned and FHLB-owned
options
-
Multitude of asset-based
portfolios accepted as eligible
collateral
Refer to the Rates page on our
public website,
www.fhlbdm.com/rates/rates.htm,
or contact your Relationship Manager
for more information.
