Member Collateral Verification Process

FHLB Des Moines performs regulatory-mandated reviews called Member Collateral Verifications (MCVs) for all members pledging loan collateral.

Download our MCV WorkFlow Guide, which outlines the work flow of the MCV process.

The MCV has four primary purposes:

  1. Verify existence and completeness of loan file documentation
  2. Verify the pledged loan collateral meets FHLB Des Moines eligibility guidelines.
  3. Perform an Underwriting Assessment
  4. Validation of the data

MCV’s are performed on all pledged loan portfolios. Certain loan portfolios are grouped together for sampling aggregation and the results are then applied to each loan portfolio within that group.

Outcome of the MCV

The result of the review is used, in part, to determine a member's Advance Equivalency (AE). AE is the lendable value of eligible collateral after pricing and various discounts have been applied to the loan collateral's Unpaid Principal Balance (UPB).

Once applied, the results of the review will remain in effect on a member's pledged collateral until their next MCV.

Frequency of MCV

All members pledging loans will have an MCV at least once every 5 years. Some members may be required to have more frequent MCVs under certain circumstances.

Members will be notified under the following schedule:

For MCV's Occurring: Member Receives Notification:
January - March November
April - June February
July - September May
October - December August

Any questions should be sent to: MCV_Collateral@fhlbdm.com.