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February 12, 2021 | Q1 2021
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New Resource: Member Map of Credit and Collateral
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We recently launched a new resource on our website to better simplify and provide clarity around FHLB Des Moines credit and collateral practices.
Our Member Map of Credit and Collateral focuses on three key areas:
- How credit is extended to members
- Details pertaining to pledged collateral value
- Suggested practices to minimize the impact of a reduction in credit capacity and to maximize your collateral capacity position
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Employee Feature: Barbara Loper, Manager, Collateral Review Depositories
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Barbara Loper is coming up on her 10-year anniversary with the Federal Home Loan Bank System. She is proud of how her team has pivoted during the COVID-19 pandemic to continue providing excellent service to our members through remote MCVs. Get to know more about Barbara in our quarterly employee feature!
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Will 2021 Be YOUR Year for eNotes?
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2020 was an exciting year for eNotes at FHLB Des Moines. Our launch into acceptance of residential eNotes as eligible collateral was only the beginning. We will continue to work closely with our partners at
MERS® to develop
tools and resources to help our members get started with eNotes at their own institutions.
The adoption of eNotes continues to accelerate. In December, 55,076 eNotes were registered on the MERS® eRegistry (a 261 percent YOY increase), bringing the 2020 total to 462,671 eNotes!
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SOURCE: MERSCORP Holdings, Inc.
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Thinking about eNotes but not sure where to start? Our Advance Collateral department is happy to start the discussion and answer your eNotes questions.
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Our partners at MERS are also a great resource to start the conversation with eNotes and learn more about the MERS® eRegistry.
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Reporting and Pledging Loans in Forbearance
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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. We've outlined this change in our Member News.
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✔ REMINDER:
BBC Reporting Deadline is February 15, 2021
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Extending Eligibility Guidelines for Loans Adversely Affected by Major Disasters
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Adjusted Eligibility Guidelines for Pledged Collateral
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As a part of our overall response to COVID-19, we've temporarily adjusted our eligibility guidelines on pledged collateral to align with our member financial institutions who are implementing loan forbearance or loan modification agreements for their borrowers.
Given the significant impact of other natural disasters this past year, the Bank will now extend these accommodations to any loan adversely affected by a major disaster occurring in 2020. To determine if an area has a qualifying major disaster declaration, visit the
FEMA website .
Refer to the Frequently Asked Question page linked below for additional details and clarifications.
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Updated Eligibility for Participation Loans
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If your institution is considering pledging participation loans, please review our
updated guidelines.
Summary of key changes:
- Participation loans whose entire economic interest (i.e., 100% of principal and interest cash flows) has been separated from the retained legal interest are not eligible for pledging to FHLB Des Moines in any collateral type code. These structures are typically used to transfer a loan’s economic interest from the originator to an affiliate.
- Participants may be asked to execute an agreement(s) permitting assignability of the pledged participation loan.
- Prior approval from FHLB Des Moines of agreements is required prior to pledging participation loans (purchased and retained).
Applicable eligibility checklists have been updated to include the note: 100% participations purchased are not eligible.
As part of this eligibility change, we will soon be requesting an attestation to validate this type of loan collateral is not included in your quarterly BBC pledge.
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Note:
All members with pledged collateral impacted by this change will be notified by their relationship manager.
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Is there someone else on your team who should receive this newsletter?
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