FAQs

Borrowing Base Certificate

• How often are online Borrowing Base Certificate (BBC) Forms required?

  BBC Forms are required every calendar quarter, tied to the timing of members’ regulatory call report preparation. Members can begin completing and submitting online BBC Forms shortly after the start of each new quarter. FHLB Des Moines permits its members to submit their forms within the first 45 days of each quarter.

• What happens when online BBC forms are not submitted within the first 45 days of a calendar quarter?

  Members who have previously pledged a loan collateral class with a BBC Form and have not submitted an updated online BBC Form within the first 45 days of a calendar quarter will begin receiving electronic reminders. The first reminder will be sent on Day 46. Members who have not submitted an updated BBC form by Day 56 of a calendar quarter will be notified that an updated BBC must be submitted by Day 60 in order to keep borrowing capacity for the collateral pledged under the outdated BBC form. Advance equivalency for collateral pledged under a BBC Form that has not been updated, will be removed on Day 61 of a calendar quarter.

• Who can complete an online BBC Form?

  Any individual authorized and established on eAdvantage to be a BBC User can prepare and submit online BBC Forms. See instructions for establishing an eAdvantage BBC User.

• Should I state the BBC’s amount entries in rounded or whole numbers?

  Unlike the quarterly regulator’s reports, all the amounts placed into the FHLB Des Moines BBC forms should be stated with all the digits through the last dollar. Amounts may still be rounded to the nearest thousand, but must be in the following acceptable formats:

  1. $60,251,123 Acceptable
  2. $60,251,000 Acceptable
  3. $60,251 Not Acceptable
• After the form has been submitted to FHLB Des Moines, how soon will the update be shown on eAdvantage?

  Members can check their collateral position within two hours of submission to view updated advance capacity.

• How can I unpledge a certain collateral type?

  A previously pledged collateral BBC form can be un-pledged by entering $0 in the beginning balance box of the BBC form for the collateral type to be removed (no other entries are necessary). The form will need to be ‘certified’ in order to send it to the FHLB Des Moines for processing. Once the form is processed, the collateral type will no longer appear in your advance equivalent value of collateral pledged.

• How can I change the amount pledged for a type of collateral?

  A previously pledged collateral BBC form can be changed by the customer by entering the revised/updated dollar amount in the beginning balance box (no other entries are necessary) of the BBC form for the collateral type to be changed. The form will need to be ‘certified’ in order to send it to the FHLB Des Moines for processing. Once the form is processed, the updated advance equivalent value of the collateral type will then appear in your advance equivalent value of collateral pledged.

  Once a quarter-end date has passed, updated amounts for the prior quarter-end are no longer allowed.

• Who can I call if I have questions about online loan pledging?

  The MFO Collateral Operations team is available for questions from 8:00 AM until 4:30 PM Central, Monday through Friday. Members can call 800.544.3452 ext. 2500 to speak to a representative or email AdvanceCollateral@fhlbdm.com.

Loan Listing

• How often are online loan listing updates required?

  Loan listing updates are required on the 15th day after each month-end.

• What happens when online loan listings are not updated before the following month-end?

  Members who have previously pledged a loan collateral class using a loan listing should submit an updated online loan listing within the first 15 days following month-end. Collateral pledged under a loan listing not updated by the 25th day of the month will be removed on the 26th day resulting in reduction of borrowing capacity and possible collateral shortfall.

• Who can complete monthly online loan listing updates?

  Any individual authorized and established through eAdvantage as a Loan Listing User can submit loan listing files. See instructions for establishing an eAdvantage Loan Listing User.

• After the listing has been submitted to FHLB Des Moines, how soon will I see the update in eAdvantage?

  Members can check their collateral position and view their updated borrowing capacity two hours after submission.

• Who can I call if I have questions about the new format and instructions?

  The Collateral Staff is happy to assist any member with questions from 8:00 AM to 4:30 PM, Monday through Friday. Members can call 800.544.3452 ext. 2500 to speak to a collateral representative or send an email to advancecollateral@fhlbdm.com.

• If necessary, how can I release a delivered loan?

  The Loan Listing section in eAdvantage contains a link to release delivered loans. The member can release one loan at a time by completing the requested fields on the screen and submitting the request. If a list of loans is requested to be released by a member, a file can be uploaded to eAdvantage using the browse option. The file format to release a file of loans can be found in the Collateral Links section in the right margin of the Loan Listing section.

• Can I delete columns that don’t apply to my listed loans?

  No, the header row must remain intact. If the column does not apply to your loan list, leave the data fields blank, but leave the header.

• There are multiple loan listing file formats. How do I know which format to use?

  The file format your institution uses is determined by APSA type, borrowing capacity and type of collateral. You can refer to the 'Pledging and Releasing Collateral' section of the website to determine the appropriate file format based on your APSA type and pledge status of the collateral type in question.

• After I’ve submitted my loans list, I realize I’ve made a mistake, can I resubmit through eAdvantage?

  Yes, however you cannot resubmit it while the button is yellow and says, “Pending”. You must wait until the button turns green and says, “Processed”. This could take up to one hour.

• When pledging multiple loan categories, should I submit a separate file for each category?

  No. Aside from held for sale and/or student loan files, all listed loan categories should be on the same spreadsheet unless you have been specifically notified to do this differently.

Securities Collateral

• Can securities pledged to FHLB Des Moines as collateral be held with a third party custodian?

  Yes, if the custodian bank is a FHLB Des Moines approved custodian bank. You can contact the collateral department at 800.544.3452, ext. 2500 for list of approved custodian banks. A Collateral Custodial Agreement executed by all three parties: the member, the custodian bank and FHLB Des Moines must also be provided to FHLB Des Moines

• Can members pledge securities and receive credit in their total collateral balance the same day for securities collateral held with an approved third party custodian bank?

  FHLB Des Moines will give collateral value credit to all members pledging securities as soon as the Collateral Department receives a pledge confirmation from the custodian holding the security. Periodically there can be delays in receiving the confirmation from third party custodian banks.

  Securities that are safe-kept with FHLB Des Moines or delivered and received by FHLB Des Moines prior to the cut-off time will be included in the member’s collateral balance the same day.

• After I have submitted a security collateral pledge request to FHLB Des Moines through eAdvantage, what do I need to do to complete the pledge?

  Please contact the custodian bank holding the pledged security and complete the forms they require for transferring the pledged security into a FHLB Des Moines collateral custody account. Instructions for delivering securities to a collateral custody account at FHLB Des Moines are available on the ‘Pledging and Releasing Collateral’ section of the website.

• What do I send to the securities custodian to pledge a security as collateral?

  Members can send their custodian the Confirmatory Assignment for the securities pledged as collateral prior to submitting the online pledge to FHLB Des Moines. Members should contact their custodian directly for any alternate or additional instructions they have for processing a securities collateral pledge.

• What fees are associated with pledging securities as collateral to FHLB Des Moines?

  Members pledging securities safe-kept with FHLB Des Moines do not incur collateral fees, but will pay safekeeping fees. For further details on FHLB Des Moines’ safekeeping fees, please contact Member & Financial Operations at 1.800.544.3452 ext. 2200 or via e-mail at memberservices@fhlbdm.com.

  Members pledging securities collateral safe-kept with a third party custodian will pay $25.00 at pledging and $6.00 per pledged security each month the security is pledged to FHLB Des Moines.

• Does FHLB Des Moines provide safekeeping services?

  Yes. Please contact FHLB Des Moines’ Member & Financial Operations at 1.800.544.3452, ext. 2200 or memberservices@fhlbdm.com for further information.

• Where can we find instructions for delivering securities collateral to FHLB Des Moines’ safekeeping?

  Securities collateral delivery instructions are available under the 'Safekeeping and Custodial Resources' on our Safekeeping & Custody Services page.

• What is FHLB Des Moines securities collateral delivery cut off time?

  Our Safekeeping & Custody Services page has the business hours posted.

  Business Hours

• When are prices for securities pledged as collateral updated?

  All pledged securities collateral are priced daily. Updated securities collateral prices are generally included in members' advance equivalent value the following morning.

• When is the advance equivalent value of pledged mortgage-backed securities (MBS) collateral updated for principal payments?

  FHLB Des Moines updates MBS principal payment factors daily following the information being announced and prior to the member receiving the cash payment. Members’ MBS collateral advance equivalent value is adjusted at the time FHLB Des Moines updates the principal factor.

Member Collateral Verification (MCV)

• The Required Information list in the MCV Information Packet requests that electronic lists of loans be provided for the review. Does this just pertain to the portfolios that are currently being pledged by the member?
  • Yes. The electronic loan list should balance to the Net Eligible amount for each Borrowing Base Certificate portfolio pledged as collateral. The list should be provided in a CSV Comma Delimited format or an Excel format. The required data fields for the MCV process are outlined in the MCV Information Packet.
  • Electronic loan lists for Listed Collateral that are submitted through e-Advantage on a monthly basis can be retrieved by the FHLB Collateral Specialist. The member does not need to provide the electronic loan lists for Listed Collateral.
  • The lists of loans Not Fully Disbursed; List of loans to employees, officers, directors, attorneys or agents of your institution or the Federal Home Loan Bank of Des Moines; or List of loans more than 90 days delinquent (or 30 days for Secured Business Lines of Credit, Agri-Business Lines of Credit, and One-to-four family - Construction) are internal reports and apply to all loan types and not just the loans being pledged as collateral. If these reports are being used to identify deductions on the Borrowing Base Certificate, they will have to be identified further by loan #, name, current unpaid principal balance, and class code.
• Clarify the meaning of “Loans Not Fully Disbursed.”

  Loans Not Fully Disbursed are loans with funds available to disburse. This does not apply to One-to-Four Family Construction loans, HELOC’s, Secured Business Lines of Credit, and Secured Agri-business Lines of Credit. The current Unpaid Principal Balance should be used when deducting these loans, and not the funds still available to be disbursed.

• Does the P & I payment required for the loan list include escrow?

  No, Principal and Interest Only.

• What is needed for the Interest Rate Code column?

  The FHLB Des Moines Collateral Risk Specialist/Analyst needs to know if the Interest Rate Code is Fixed or Variable.

• In regards to loans to attorneys or agents: are these any attorneys or agents utilized by any of the bank branches or just the main one(s) used by Corporate?

  This infers to those attorneys who are on staff or on retainer to represent the bank for corporate issues. It does not mean any attorney who may render a title opinion; but if you use one attorney for all opinions, they may be considered your Agent/Attorney.

• Is Internet Connection required for the FHLB MCV review and who is the contact for Internet Connectivity questions?

  Yes, the following Internet Connection information is needed:

  1. Type of Connection: Wired or Wireless
  2. Security Information you require
  3. Access to the following ports: 433 HTTPS, 500 UDP, 4172 TCP/UDP, 4500 UDP, 10000 TCP

  MCV_Collateral@fhlbdm.com can be contacted with Internet Connection questions, but may, in turn, refer the questions to a member of the Desktop Support staff.

• What is needed to be set up for FHLB Secure Transfer (ST) Site?
  • Your institution will have an eAdvantage administrator who must set up new Secure Transfer users with a User ID and Password. Once the user has been assigned a User ID and Password, the FHLB Des Moines Collateral Specialist will request that a folder be created for the user. When the folder setup is complete, the FHLB Des Moines Collateral Risk Specialist will e-mail the Secure Transfer Guide and Instructions to the user.
  • If the administrator needs further assistance, the FHLB Des Moines Help Desk can be contacted at 1-800-544-3452 ext. 2555.
• If a person is a shareholder, do they have to be deducted as an employee, director, or officer?

  Being a shareholder does not disqualify a borrower’s loan. But if the shareholder also happens to be an employee, director or officer; his/her loan would not be eligible.