President's Message
We are all aware of the current
credit crisis and the breakdown of
the sub-prime mortgage market.
Fortunately, the FHLBank System was
designed to provide a stable,
reliable source of funds for our
member financial institutions and to
support housing finance even when
the mortgage and credit markets are
in turmoil. That fact is clearly
demonstrated by our advance balance
growth in recent weeks. During the month of August,
the FHLB Des Moines advance balance
grew $2 billion from $22.7 billion
on July 31, 2007 to $24.7 billion as
of August 31, 2007.
FHLB Des Moines, with our AAA rating
and member-centric, conservative
business model, is well-positioned
to continue to sustain members
through these turbulent times in the
credit market by reliably providing
our members funding with more
choices and greater convenience. To
that end, we have introduced two new
products that give you the
flexibility to prepay an advance
without incurring a prepayment fee
and we have expanded eAdvantage –
our secure, online banking service –
so you can now transact advances up
to $14.9 million for up to five
years. We have extended our wire
room hours for overnight advance
requests until 4:30 P.M. (CST),
reduced our collateral maintenance
levels and increased borrowing
capacity for other real estate
related collateral and community
financial institution collateral.
Besides providing a vital source of
liquidity, Bank membership also
provides access to our Community
Investment Programs. We encourage
all members to think about how you
might participate in the programs
and bring additional housing
resources to your community. In
July, 32 members received $7.3
million in Affordable Housing
Program grants; in August, 44
members received allocations from
our $1 million Rural Homeownership
Fund; and, in October, we will be
announcing the members who will
receive allocations from our $1
million in Urban First-Time
Homebuyer Funds.
These three programs, along with our
Native American Homeownership
Initiative, are designed to help
different populations at or below 80
percent of median income and can be
used for down payment, closing and
rehabilitation cost assistance for
individuals and families. These
programs are funded by ten percent
of our net income as required by our
charter and can be an added benefit
of FHLB Des Moines membership. Learn
more about the Community Investment
Programs on our website at
www.fhlbdm.com and make 2008 the
year you take greater advantage of
your membership in FHLB Des Moines.
