{{system.date:default=}} | Q3 2018

Collateral Quarterly

Additional Information Regarding 2019 Changes to Collateral Definitions and Reporting Requirements

COLLATERAL UPDATE

On August 1st, FHLB Des Moines member institutions received notification of changes to collateral definitions and reporting requirements to be implemented in January 2019. Full details regarding this change can be found on our Members Site.

NEW UPDATE FOR LOANS WITH NO FICO® SCORE - Since the initial announcement, we have more clearly defined the classification rules for residential 1-4 family first mortgage loans, specifically, when there is no FICO score. Subprime loans will be identified using FICO score first (per definition), and secondary indicators only when a FICO score was unavailable at origination.

Loans should be reported as Subprime if at origination:

FICO ≤ 660;
No FICO score is available and the loan exhibits subprime characteristics¹;
No FICO score or credit history is available.

The Member FAQ Guide has been updated to address recent member questions.

MORE INFORMATION

Employee Feature:
Michelle Wonders

Senior Collateral Specialist

A dedicated FHLB Des Moines employee for nearly 38 years, Michelle Wonders currently supports our Collateral Review Analysts who perform Member Collateral Verifications (MCVs) for our members. Read more about how her commitment has made her a key member of the Collateral department as well as the Bank.

READ MORE

System-Wide Working Group Established

WHAT WE ARE WORKING ON

A Federal Home Loan Bank (FHLBank) system-wide working group is in the process of reviewing the legal and operational requirements to accept eNotes as collateral. All 11 FHLBanks are working together to keep the project moving forward.

Pledging Reminder

NOTES FROM THE FIELD

Collateral should be coded in the applicable type codes and be based on the actual collateral securing the note and not based on loan purpose.

Example

If the collateral securing the note is a 1-4 unit single family and:

owned by a business OR
non-owner occupied

*PLEDGED AS:*	*NOT PLEDGED AS:*
Single-Family Units	Multi-Family or Commercial

Phone Numbers Changing

NOTES FROM THE FIELD

As we look forward to moving to our new Des Moines Headquarters in October, we will be soon be sending out a important notification to members containing the phone numbers that will be changing in conjunction with the move. This will affect both the Collateral Department number and the personal numbers of all Collateral staff. Look for more detailed information regarding these changes in the coming weeks.

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^{FICO is a registered trademark of Fair Isaac Corporation}

¹ At origination or most recent modification, evidence of delinquency (two or more 30-day delinquencies in the last 12 months or one or more 60-day delinquencies in the last 24 months); evidence of foreclosures or judgments in the prior 24 months; evidence of bankruptcy in the prior 60 months; or a DTI ratio of 50% or greater.

Federal Home Loan Bank of Des Moines

1-800-544-3452 - www.fhlbdm.com