Loan to Value Updates Effective July 2, 2018
Adjustments to Loan to Values (LTVs) for advance capacity determination for loans and securities became effective July 2, 2018. View Revised Loan and Securities LTVs. If you would like additional information on the updated LTVs, please email firstname.lastname@example.org or call 800.544.3452 ex 5408.
Increase in Credit Capacity for Eligible Depository Member Institutions
The Federal Home Loan Bank of Des Moines Board of Directors has increased the maximum total credit capacity limit for eligible depository institutions from 35 percent to 45 percent. Members who are eligible or become eligible for this increased capacity will be notified following FHLB Des Moines Credit Department's next quarterly financial review, estimated to be completed in early July. The Member Products Policy has been updated to reflect this revised limit. Questions regarding these changes – please contact your Relationship Manager.
Changes to Collateral Eligibility
In 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.
Letters of Credit Changes
The following changes to Federal Home Loan Bank of Des Moines Letters of Credit go into effect on February 5, 2018:
Collapsing of Price Tiers
- FHLB Des Moines is collapsing the pricing tiers for Letters of Credit.
- There is now a single price for all Letter of Credit types, regardless of size, including Letters of Credit issued in conjunction with the FHLB Des Moines Public Unit Deposit program.
- This change provides greater flexibility for members.
- To view the updated pricing schedule, please see the Fee Schedule.
Elimination of Average Daily Balance and Direct Pay Letters of Credit
- The Average Daily Balance and Direct Pay Letters of Credit are no longer available.
- Outstanding Average Daily Balance and Direct Pay Letters of Credit types will be honored until the next scheduled renewal date, or expiration date, whichever occurs first.
Adjustment to Minimum Fees
- FHLB Des Moines has long held our service fees well below industry norm.
- The changes to our Letters of Credit fees are specific to minimum fees which many Letters of Credit charges easily exceed.
For questions regarding the Letters of Credit changes above, please contact your FHLB Des Moines Relationship Manager.