Prepayment of Advances
By regulation, FHLB Des Moines is required to charge an advance prepayment fee that makes the Bank financially indifferent to the member’s or housing associate’s decision to repay the advance prior to its maturity date. For callable advances, the member or housing associate owns the right to terminate the advance after the lockout period and according to the stipulated call frequency. Repayments of advances on a designated call date with proper call notice are not considered prepayments and therefore are not subject to prepayment fees. Repayments made on a date other than a designated call date are considered prepayments and are subject to the applicable prepayment fees.
Advance prepayment fee indications are available for most advance types through eAdvantage, the Bank's secure website. If an indication for an advance does not appear in eAdvantage or for assistance with regard to advance prepayments, contact the Money Desk.
- Prepayment fee indications on eAdvantage are indications only and are calculated internally by the Bank based upon interest rates as of the close of the prior business day
- Prepayment fee indications on eAdvantage will vary from "live indications" and actual prepayment fees due to changes in interest rates, changing market conditions and other external factors
- Prepayment fee indications do not include the outstanding principal amount and accrued interest
- Requests for advance prepayments should be submitted to the Money Desk prior to 2:00 PM (CT) to ensure timely processing
Submission of a Prepayment Fee Request Form is required which is available through eAdvantage or by contacting the Money Desk. The form must contain the maximum prepayment fee a member is willing to accept (stop price) and the signature of an authorized individual at the time the form is submitted to the Money Desk via fax or email.
Provided a prepayment fee at or below the stated stop price can be attained, the Money Desk will process the request and notify the member of the actual prepayment fee. Typical settlement for advance prepayments is two business days. In the event the prepayment fee would exceed the stop price, the prepayment transaction will not be processed and the member will be notified accordingly.
Please contact the Money Desk if you have any questions.