Reporting and Pledging Loans in Forbearance
posted on Friday, January 15, 2021 in Member Services
Beginning with the period ending, December 31, 2020, members will need to verify the inclusion of pledged loans in forbearance on their quarterly Borrowing Base Certificate (BBC) in eAdvantage. This will prompt an expanded BBC form to identify the Unpaid Principal Balance (UPB) for collateral types with loans in forbearance.
When submitting your quarterly BBC, you will be prompted with the following message:
In order to continue, it is necessary to select “Yes” or “No” for each question*.
Selecting “Yes” to pledging loans currently in forbearance will create an additional column on your BBC to report the UPB for loans in forbearance. Report your total pledge for the quarter in the left (first) column and the subset of the total that represents the UPB for loans in forbearance in the corresponding column. Amounts entered in Forbearance UPB Pledged cannot be larger than Total Pledged.
Already submitted your BBC for the quarter ending December 31, 2020?
We appreciate your promptness for reporting early. If your pledged loan collateral portfolio does not include any loans in forbearance, no action is required . If you are pledging loans in forbearance, please resubmit your BBC by the February 15, 2021 quarterly deadline.
Loan forbearance or loan modification
- Forbearance Agreement
A Forbearance Agreement is a suspension or reduction in principal and/or interest payments for a period of time, which result in no changes to the original wet-inked promissory note. If no changes to the original wet-inked promissory note take place, no signature is required to witness acknowledgment and consent to the forbearance.
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- Modification Agreement
A Modification Agreement is a suspension or reduction in principal and/or interest payments for which repayment changes the original terms and conditions of the original wet-inked promissory note. If changes to the original wet-inked promissory note take place, signatures from all borrowers are required; please see FHLB Des Moines Covid-19 modification.
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For questions, contact our Collateral Department.
*The question related to LIBOR-linked collateral was implemented in July 2020. Details on what is required for reporting loans tied to the LIBOR index can be found here.