May 15, 2019 | Q2 2019
Collateral Quarterly
eNotes Update


MBA Technology Solutions Conference

"The Road to eNotes" recently took us to Dallas, TX, to the MBA Technology Solutions Conference where we (the FHLBank System) met with several eVault vendors and other industry experts. All of the working group leads reported on their progress and we mapped out the next leg of the journey. The goal is to have requirements established for the acceptance of eNotes as eligible collateral before year end as well as contract with an eVault vendor. We are also assessing any necessary changes to systems and pledging processes. 

Let us know - where is your institution on "The Road to eNotes?"

2019 MERS® User Conference

Vonda Renfrow, VP/Director, Member Services, will be attending MERS® User Conference, and speaking at the eMortgage Boot Camp June 24-26th in Reston, VA. If you are attending let us know!

Ryan Coppess
Employee Feature: Ryan Coppess
Analyst, Collateral Review
This quarter, we’re thrilled to feature one of the newest additions to the Collateral Field Staff, Ryan Coppess. Our members in Southwest Iowa or Western Missouri may have already met him during a recent Member Collateral Verification (MCV) review, but we wanted to give him a proper introduction.

“I’m motivated by the opportunity to be in front of members, face-to-face, to help them find the best ways to use collateral to help their balance sheet,” Ryan said. 
Increasing Advance Capacity: A Member Success Story

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.
Average Eligibility Factors Remain High Across Members

FHLB Des Moines establishes an Eligibility Factor (EF) after assessing eligibility and underwriting quality of a sample loan portfolio following your most recent Member Collateral Verification (MCV) review. The EF is one of the primary ratios used to calculate your institution’s Advance Equivalent (AE), the maximum collateral amount available to members to secure extensions of credit.

Eligibility Factor Graphic-2.png

Overall, our members do an outstanding job at pledging only eligible loans. Average eligibility from MCV reviews is around 90 percent (see graphic above). This high level isn’t surprising; accurately pledging eligible loans is rooted in large part by member practice. We've also highlighted some of the reasons that your eligibility factor may have been lower than the average in this article about common causes of loan ineligibility. Verify you are pledging correctly, referencing our Loan Eligibility Guidelines and Checklists. If you have more specific questions, a member of our collateral team would be happy to chat with you either via email or phone 800.544.3452, ext. 2500.
Common Causes of Loan Ineligibility


Each year, FHLB Des Moines assesses the causes of loan ineligibility from Member Collateral Verifications (MCVs) in the prior year. The primary causes tend to be the same matters, notably:
1. Loan Coding
2. Title Work

Together, the above two matters account for nearly 1/3rd of ineligible loans found in MCVs. Read about some things to consider in improving eligibility on these two issues.
Reminders for Completing BBC by Today's May 15th Deadline

Pledged total for Residential 1-4 Family 1st Mortgages (type codes 1101, 1102 and 1103), must be accurate totals, not estimates. When submitting/certifying your BBC, you are confirming the totals are accurate.

These requirements were implemented on January 2, 2019. Full details regarding these new requirements can be found on our website.
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Federal Home Loan Bank of Des Moines

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