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Federal Home Loan Bank of Des Moines

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Lien Release or Subordination

The Homeownership and Down Payment Product grants provided by the Federal Home Loan Bank of Des Moines are subject to a 5-year retention period.

To release a lien once the retention period has ended, please work with the Lender or Beneficiary on the Deed Restriction or Deed of Trust.

If the home is sold before the retention period ends, a pro rata recapture amount will need to be calculated and sent to the Federal Home Loan Bank of Des Moines before the lien can be released. The Lender or Beneficiary on the Deed Restriction or Deed of Trust will need to complete the Recapture Calculator (Excel). The payoff check should be sent to the Federal Home Loan Bank of Des Moines along with the completed Recapture Calculator (Excel). Once the Federal Home Loan Bank of Des Moines has received the payoff check, the lien can be released.

If the home is refinanced before the retention period ends, the lien can be subordinated. The Lender on the Deed Restriction will need to complete and execute the Subordination Agreement (Word). For forms which show a Beneficiary instead of a Lender, please work with our Community Investment Department by sending a copy of the recorded Deed of Trust to communityinvestment@fhlbdm.com.

© 2018 Federal Home Loan Bank of Des Moines.