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.
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). 100% purchased participation loans are to be pledged as purchased participations loans and are not whole loans.
Lien Protection Policies
Members wishing to pledge real estate loans that have lien protection product (LPP) instead of traditional closing title work as collateral must contact the Bank before pledging these loans. Examples of traditional title work that LPPs typically replace include Title Insurance Policies, Attorney’s Opinions, Owners & Encumbrances Reports (i.e. Title Reports) and Internal Lien Searches.
LPP are typically insurance products that reimburse originating lenders for losses realized from otherwise unknown superior liens. If an undiscovered superior lien on the property impairs the lender’s ability to collect or reduces the net proceeds upon its satisfaction, the LPP provider will pay the lender for losses incurred. Home equity lines of credit and one to four family second mortgage loans can be pledged if a member utilizes a LPP versus traditional title work. However, prior to these loans.
Prior to pledging one to four second lien residential mortgages or Home Equity Line of Credit (HELOC) that utilize a LPP versus traditional title work, please provide information on the LPP to the Collateral Department.
Applicable Type Codes: 1414, 1423, 1424