Does FHLB Des Moines remain committed to the current collateral LTV/haircut levels going forward?

We, too, are experiencing market-induced volatility that is causing the value of pledged collateral to generally be less than it was before the crisis. As a secured creditor, we monitor collateral valuations closely and we are taking actions to ensure our collateral valuations remain up to date. We are evaluating taking such actions as increasing the frequency of valuing our collateral and ensuring these values correctly capture the stressed market liquidity to ensure our collateral values are current in this volatile market.

At this time, we plan to follow our established annual review and update schedule for collateral Loan-to-Values (LTVs)/haircuts, currently scheduled for implementation in early July for Blanket Advances, Pledge and Security Agreement (APSA) members. Any changes in their collateral LTVs/discounts will be communicated at least 30 days prior to being effective.

Non-Blanket members should anticipate pledged residential and commercial real estate loan collateral being priced at least monthly. Members will be made aware of the effective dates of updated pricing in advance of applying the updated prices. We are monitoring the need to adjust the frequency for updating loan collateral LTVs/haircuts for loan collateral pledged by Non-Blanket members and will notify members in advance should the timing of updating these collateral LTVs/haircuts change.