Collateral Eligibility Updates Effective June 30, 2023

last updated on Monday, May 1, 2023 in Business News

Updates to Electronic Signature Modification Guidelines and an addition to the General Eligibility Checklist are effective June 30, 2023.

Clarification added to Electronic Signature Modification Guidelines

FHLB Des Moines currently accepts electronically signed loan modifications of wet-inked promissory notes subject to the Bank's Electronic Signature Modification Guidelines. We've expanded the statement regarding eligibility of specific electronic signature technology:

The electronically signed loan modification must be signed using electronic signature technology that complies with the ESIGN Act, however, electronic signatures by audio or video recording or by biometric technology (such as fingerprint, voice, facial, or retinal recognition) are not eligible to serve as collateral.

Addition to General Eligibility Checklist

The General Eligibility Checklist will be updated effective June 30, 2023 to add the following information:

Repayment Ability Analysis
For members with a borrowing capacity of 20 percent of assets or less, the file evidences borrower's ability to repay; where lacking , the loan is ineligible for two years following origination.

1. Collateral
2. Credit and Collateral