Increasing Advance Capacity: A Member Success Story
posted on Tuesday, May 14, 2019 in Member Services
Member Collateral Verification (MCV) reviews can be an excellent opportunity for members to improve their advance capacity. Sheilah Stoneback, Credit Analyst at One American Bank in Sioux Falls, South Dakota, shares how her team was able to increase their advance capacity by 50 percent due to stellar MCV results for both eligibility and meeting the Bank’s underwriting assessment following their most recent MCV.
“We have made determining the collateral capacity a priority and we incorporate the FHLB Des Moines eligibility determination into our loan process,” Sheilah said. “Each and every loan that is processed is looked at for possible eligibility and the presence of an eligibility checklist is a required file document. This process includes input from our lenders, loan support personnel, and myself. Our staff has become very knowledgeable as to the requirements for pledging.”
She reiterated that having a close relationship with FHLB Des Moines and being willing to ask as many questions as necessary led to the rapid success in increasing their capacity.
“I believe that I can speak not only for myself but for the entire loan staff when I say that our comfort level with the eligibility process has improved immensely,” Sheilah said. “Our audit was conducted by Glen McKay who was very professional and helpful in all stages of the audit and provided us with essential knowledge and tools to improve and maintain our program going forward. He has continued to be an important resource for information and guidance.”
Her advice to other member institutions who are looking for similar success? Include the eligibility determination process in with the loan origination process.
“Making the determination at the early stages of the process is especially important in rare cases where the loan may not initially be eligible but may become eligible at a later date,” Sheilah said. “It is important to have a follow-up system in place for these cases so that a pledging opportunity isn’t missed. We have not found this to be a cumbersome process and our loan staff appreciates the importance of adequate collateral capacity for our relationship with FHLB Des Moines.”