Callateral Quarterly FHLBDM

May 16, 2018 | Second Quarter

Quarter In Review Notes From the Field What Are We Working On

Quarter In Review

Changes to Collateral Eligibility

In an effort to streamline eligible collateral for the various APSA types, we have revised the Collateral Eligibility Standards in the Member Products Policy. Eligible loan collateral categories for non-blanket members have been simplified to include those categories currently being utilized and those with the greatest market liquidity. View the updated Loan Collateral Eligibility Guidelines and Checklists.  

LTV Updates - July 2, 2018

Periodically, FHLB Des Moines reviews and makes adjustments to the Loan to Values (LTV) for advance capacity determination for loans and securities. The next adjustment will be implemented at June month end, to take effect on Monday, July 2, 2018. Members will receive more details in the next few weeks. The last change took place in October 2017.

Notes From the Field

An Update on eNotes as Collateral

We are aware some FHLB Des Moines member financial institutions are currently originating eNote mortgages or exploring options to use eNote technology and often ask why eNotes are not currently accepted as collateral by FHLB Des Moines or any FHLBank. In order for FHLB Des Moines to take an asset as collateral, we need to be able to value and sell that asset. This is a regulatory requirement, and a generally prudent lending practice.

Helping our members succeed is our number one priority, and we have joined with the other FHLBanks to review the legal and operational requirements to accept eNotes as collateral. As information becomes available, we plan to keep you and your financial institution aware of changes moving forward.

Watch this video about the definition of an eNote:

eNotes video.PNG 
This video was produced by FHLB Dallas as part of a survey.
The survey is no longer available.



A note executed electronically
and stored in an eVault

A scanned image of a wet ink signature

Kuhn.jpgMeet Chris Kuhn-McRoberts: Manager of Collateral Operations

The Collateral team is excited to welcome Chris Kuhn-McRoberts, our new Manager of Collateral Operations. Chris has worked for FHLB Des Moines since March 2014, most recently with the Money Desk before moving to Collateral. In his new role, Chris will focus on answering member inquiries, onboarding new members, assisting with pledging and releasing assets, and ensuring that each member is fully collateralized to support obligations. 

Chris has 11 years of industry experience that includes retail management with a small community bank to operations with a large national bank. He is a licensed mortgage loan originator and also has experience as a processor and closer.

Chris can be reached at [email protected] or 515.281.1154.

What Are We Working On

MCV Notices

FHLB Des Moines performs regulatory-mandated reviews called Member Collateral Verifications (MCVs). The MCV has three primary purposes: to validate the existence of pledged collateral, assess the completeness of loan file documentation and verify that the pledged loan collateral meets FHLB Des Moines eligibility guidelines.

Twice annually (May and November), FHLB Des Moines Collateral Review Managers determine which members will have an MCV scheduled. If your institution receives a notification email of the MCV requirement:

  • Your institution has been selected for an MCV in the next 6 month period (July – December).
  • A Collateral Review Analyst will work with your institution to schedule an MCV review date.
  • The Collateral Risk Specialist will send your institution an MCV Information Packet outlining required information needed to prepare for the MCV.
  • The MCV typically takes a week to complete, but may vary based on volume, types of collateral pledged, and past review results.
  • At the end of the loan review, the Collateral Review Analyst shares preliminary MCV results in an exit meeting.
  • Upon completion, a final report is provided.

forward-to-a-friend.gif Is there someone else on your team that should receive this newsletter? They can opt in here.

© 2018 Federal Home Loan Bank of Des Moines. All Rights Reserved
801 Walnut Street, Suite 200, Des Moines, IA 50309

Twitter Flickr LinkedIn YouTube