Member Credit

As your trusted partner, FHLB Des Moines wants to ensure that you have the ability to continue to utilize Bank products and services. Member Credit and Collateral Capacity

This information below is intended to provide you with clarity around FHLB Des Moines credit and collateral practices. Here you will find how borrowing capacity (the minimum of credit and collateral capacity) is determined for members, details pertaining to the lending value of collateral, and suggested practices to maximize borrowing capacity.

Determining Credit Capacity

Each member has an assigned credit capacity and terms that are regularly evaluated and determined by our Credit department. The credit capacity for most members is at or above 30 percent of assets.

In the rare situation where a member becomes distressed, our Board of Directors has affirmed that we will continue to make advances available as long as the institution pledges sufficient eligible collateral and the member's primary regulator does not object to the extension of credit.

To find your institution's currently assigned credit capacity, navigate to the Member Account Profile within eAdvantage.

Complete details on the Bank’s credit standards are defined in the Member Products Policy beginning on page 5.

Changes to your Credit Terms

The Member Credit section of our website outlines information used in determining a member’s credit terms and how they could change:

Frequency of member’s credit capacity review
Types of information considered during a member’s credit review
Notification process for changes to member’s credit capacity and terms
Collateral pledge requirements associated with various credit capacity levels
Process for requesting exceptions

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Determining Collateral Capacity

The Bank grants or renews credit availability solely on a secured basis. Therefore, members must have sufficient eligible collateral pledged in order to use the Bank’s products.

Advance Equivalent (AE) value, is the lendable value of eligible collateral after all applicable discounts. In the determination of AE, members have the most control over the unpaid principal balance (UPB) pledged and its eligibility.

Calculation of AE:

AE Calculation with MV *Production MV applies to securities collateral or members with a Specific APSA or Delivery APSA,

Pledged Unpaid Principal Balance

The Bank offers an extensive menu of loan and securities collateral eligible to secure Bank products. Make sure to submit your pledge on time to ensure uninterrupted access to Bank products.

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Member Material Adverse Event Reporting

In order to mitigate risk, we need to be made aware, in a timely manner, of events that could influence financial decisions.

Generally speaking, a material adverse event would be any event or series of events that would cause a member's representations and warranties executed through the Advances Pledge and Security Agreement with FHLB Des Moines to no longer be true. In short, if an event occurs that you would report to your regulator, please inform FHLB Des Moines.

All FHLB Des Moines members are required to report material adverse events to the Bank. The member has always been responsible for reporting to the Bank any material adverse event that would render any representations or warranties invalid or untrue. Please report, to the best of your knowledge, material events to the Credit Department.

Material Adverse Events Report