LIBOR Advance and Collateral Reporting Changes Effective July 1

posted on Wednesday, July 1, 2020 in Business News

Advance Products

Beginning July 1, 2020, FHLB Des Moines will cease entering into new LIBOR referenced advances with maturities beyond December 31, 2021.

This change will impact certain FHLB Des Moines products with a LIBOR component, including:

  • Adjustable Rate Advances indexed to 1, 3 or 6-month LIBOR
  • Capped LIBOR Advances
  • Member-Option LIBOR Advances (MOLA)

For product related questions, contact your Relationship Manager.

Collateral Reporting

Loan Listing

Beginning July 1, 2020, FHLB Des Moines will be adding a Rate Index column to the General File Format. All members submitting their monthly loan listing using the General File Format will be required to use the new file with the Rate Index column included.

This change is being made to capture the index your institution is referencing regarding all adjustable-rate loans pledged to FHLB Des Moines via a loan listing.

Even if your institution does not pledge adjustable-rate loans, the column must be included in your file.

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Borrowing Base Certificates

Also beginning on July 1, 2020, members will be prompted to identify LIBOR-linked collateral when pledging collateral in eAdvantage. Members pledging collateral linked to LIBOR will be required to include the unpaid principal balance on these loans.

For collateral related questions, contact advancecollateral@fhlbdm.com.