Lien Release or Subordination
The Competitive Affordable Housing Program Homeownership and the Down Payment Product grants provided by the Federal Home Loan Bank of Des Moines for owner-occupied units are subject to a 5-year retention period, requiring an enforceable lien through a Bank approved Retention Agreement (aka Deed Restriction or Deed of Trust).
To release a lien once the retention period has ended, or upon sale or refinance of an assisted unit, please work with the Lender or Beneficiary named on the Deed Restriction or Deed of Trust. For forms which show a Beneficiary instead of a Lender, please work with our Community Investment Department by sending a copy of the recorded Agreement to firstname.lastname@example.org.
The Federal Home Loan Bank of Des Moines has temporarily suspended the requirement for repayment of AHP/Down Payment Subsidy Awards for owner-occupied units currently being sold or refinanced. Owner-occupied units being sold or refinanced during the period of suspension will not be required to repay the subsidy award, and the lien may be released. Please see the Announcement below for more details, or call the Community Investment Department at 800.544.3452, ext. 1173 for information.
During the period of repayment suspension the Retention Agreements for owner-occupied units that are NOT being sold or refinanced should remain in place and may NOT be released, except that a Deed Restriction may be released in the event of the death of the borrower(s).