Collateral Types Available for Pledging
FHLB Des Moines accepts various types of loans and securities as collateral.
All collateral pledged to the Bank is subject to eligibility criteria, restrictions and limitations outlined in the Member Products Policy.
The Bank will not knowingly accept collateral, safekeep any securities or move any funds secured by or linked to the marijuana industry. The Bank will not knowingly provide any funds, wire services or deliver any assets to or from such a business. The Bank reserves the right to cancel, reject or return any transaction that is determined to be related to the marijuana industry. If you have questions, please contact MFOComplianceAnalytics@fhlbdm.com.
Securities Collateral Available For Pledging
Loan Collateral Available For Pledging
Electronic Signature Modification Guidelines
Electronically signed modifications of wet ink signature promissory notes are acceptable if compliant with the Electronic Signature Modification Guidelines.
Loan participations are the contractual sale or sharing of an amortizing whole loan ownership between two or more entities. Participation loans are reported as either retained (the seller’s ownership portion in the loan(s) sold) or purchased (the ownership portion in one or more loans acquired from a seller).
Each individual participation pledged, purchased and retained, must be approved by FHLB Des Moines prior to pledging. When pledging a participation, review the specific collateral type checklists that correspond with the underlying loan and the pledging guidelines below.
When consent is required to pledge, sale, assign or transfer their participation interest, members must employ a Participation Consent Agreement (PCA), executed by both parties, which serves as proof of consent AND as a waiver of rights of first refusal. The same consent form can be used across all participations between the originating institution and participating institution. We do not allow alterations to the PCA.
Email the executed PCA and participation agreement along with the percent purchased/retained, loan number, and collateral type to email@example.com
Lost or Destroyed Notes
Loans with lost or destroyed original ink signature promissory notes are eligible only if compliant with the Lost Or Destroyed Note Guidelines.
Lien Protection Product Guidelines
Members can pledge 1-4 Family Home Equity Mortgage loans (type codes 1414 and 3414) and Home Equity Lines of Credit (type codes 1423 and 1424) up to $250,000 that have lien protection product (LPP) instead of traditional closing title work as collateral.
If a loan with LPP is reviewed during a Member Collateral Verification (MCV), FHLB Des Moines will assess the property's mortgage lien position by public record check. In the event FHLB Des Moines is not able to assess the property's mortgage lien position, the member will be asked to provide a property report demonstrating the lien position for the subject loan. If the requisite mortgage lien position is improper or not validated during the MCV, the loan will be deemed ineligible for pledging.
Applicable Type Codes: 1414, 3414, 1423, 1424