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.
The Bank is now able to accept Payment Protection Program (PPP) loans as collateral.
Securities Collateral Available For Pledging
Loan Collateral Available For Pledging
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). -- Please note that participation loans whose entire economic interest (i.e., 100% of principal and interest cash flows) has been separated from the retained legal interest are not eligible for pledging to FHLB Des Moines in any collateral type code. (These structures are typically used to transfer a loan’s economic interest from the originator to an affiliate.)
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