Federal Home Loan Bank | Des Moines
Our Journey to eNotes is Complete!

As of July 1, Federal Home Loan Bank of Des Moines (the Bank) is accepting residential mortgage eNotes (Electronic Promissory Notes) as collateral – saving you time and money.

eNotes – The Key is in the ‘e’
Learn more about eNotes, including the benefits they offer for both your business and your customers.

We’ve put together helpful videos, webinars and articles for members as they consider originating and pledging eNotes.

MERS® has developed resources specifically for FHLBank members.
Our eNotes Requirements and Guidelines page outlines the different sections and resources to help guide members through this information. 

We updated our requirements on June 24, 2020 to include information on remote online notarization and Doing Business As (DBA) Tradenames on eNotes
If you’re ready to get started or thinking eNotes might be for you, contact us and we’ll help navigate you through our set-up process.

We’ve put together a checklist to walk you through the initial enrollment process with the Bank including selection of technology partners and integration with MERS®
New eNotes Webinar Coming Soon!
A Spotlight on eNote Processes for Federal Home Loan Bank Members

During this webinar, representatives from MERSCORP Holdings and the FHLBanks will share information about key eNote concepts, requirements for pledging eNotes as collateral to the FHLBanks and steps needed to be eligible to pledge your eNotes. You’ll also learn about MERS® System Membership requirements, including a type designed for Federal Home Loan Bank Members. Information will be posted on our eNotes web page or on the MERS resource page when registration opens.
HELOC Collateral Eligibility Update Effective Oct. 1

As mentioned in previous Collateral Quarterly editions this year, the Bank has been reviewing the eligibility of Convertible Home Equity Lines of Credit (HELOC) loans (also known as Hybrid HELOCs) as collateral. Convertible or Hybrid HELOCs provide borrowers an option to convert one or more floating rate advances to closed-end, amortizing fixed rate advances.

As a result of our research, the Bank has defined clarification guidance related to Hybrid HELOCs. This eligibility update will be effective October 1, 2020, beginning with the reporting period ending on September 30, 2020.


Employee Feature: Jeff Fuller

Some of you might have had the opportunity to meet the newest member of our Collateral team, Jeff, during your remote Member Collateral Verifications (MCVs). For those of you who haven’t, we are excited to introduce you to Jeff Fuller, Collateral Review Analyst, who started at the Bank in May.
New Collateral Process to Address Eligibility and Reporting Errors
Federal Home Loan Bank of Des Moines knows it can sometimes be a challenge to meet our collateral eligibility and/collateral pledging standards. We frequently monitor for trends or patterns in reporting errors in Member Collateral Verifications (MCV) and/or in collateral pledging.

When we identify a pattern of repeat challenges with meeting these standards, we may initiate additional action steps to help ensure collateral eligibility and/or reporting get back on track.  

Read the full member announcement on our website for examples of repeat collateral eligibility and pledging challenges as well as some of the action steps we may employ. 

Recent Collateral Changes
On July 1st – there were several changes to collateral reporting that took effect:

The Borrowing Base Certificate (BBC) Has a New Look in eAdvantage

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Headline (H4)
We’ve updated the BBC in eAdvantage to be easier for you when pledging and reporting collateral. We have a new Getting Started Guide to help walk you through the changes. 

A few new features include:
  • The BBC will preselect collateral types for you based upon your previous quarter’s submission.

  • You can more seamlessly enter information for multiple type codes on one screen.

The Quarterly BBC Reporting Deadline is Friday, August 14.
Updated General File Format for Monthly Loan Listing

If you submit a monthly loan listing file, there is a new Rate Index column. This addition was made to capture the referenced index for adjustable-rate loans pledged to FHLB Des Moines. This column must be included for all members using the General File Format, even if adjustable rate loans are not pledged.

Please use the new General File Format when submitting monthly loan listing reporting.
Loan-to-Value (LTV) Discounts Updated July 13

Last month, FHLB Des Moines implemented revised LTVs for most collateral categories. These changes may affect your FHLB Des Moines borrowing capacity. These updated charts also include LTV discounts for new collateral type codes: eNotes and PPP loan collateral.
Supporting Members through COVID-19
We have temporarily adjusted our eligibility guidelines on pledged collateral to align with our member financial institutions who are implementing loan forbearance or loan modifications agreements for their borrowers, including the acceptance of agreements executed with electronic signatures. 
We are accepting Paycheck Protection Program loans as collateral! 

Visit our website to view eligibility details and information on the pledging and reporting process for these types of loans.

Virtual Member Collateral Verification (MCV) Reviews
In May, we sent out a survey to members who were scheduled for an upcoming review to help us better understand your capabilities to conduct a remote MCV, considering the ability to send, upload or allow the Bank access to imaged documents of loans selected for an MCV sample. 

Of the members who were contacted, nearly 50% responded and 92% of our upcoming reviews will be virtual. Thank you!
Improved Secure File Transfer Site
With increased remote reviews, we’ve also given our secure file transfer site a new look. We’ve enhanced our technology to give members an improved experience with faster, visually improved file uploads. Members currently using this site won’t need to do anything different as their log-in credentials and site URL remain the same.
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