Announcements

an important message from the Federal Home Loan Bank of Des Moines

FHLB Des Moines Announces Changes to Member Products Policy

Member Products Policy
FHLB Des Moines Board of Directors approved two revisions, outlined below, to the Bank’s Member Products Policy (MPP). These changes to the MPP were approved by the Board in August 2009, and FHLB Des Moines is now operationally ready to implement them.

A complete copy of the MPP can be found on the Bank’s website at www.fhlbdm.com/ps_mpp.htm.

Acceptance of Guaranteed Student Loans as Collateral
Effective immediately, the Bank is now operationally capable of accepting guaranteed student loans (GSLs), made under the Department of Education’s Federal Family Education Loan Program, as eligible collateral for advances.

Pledging of GSLs as collateral will require setting up a separate “collateral trustee” relationship. A complete list of loans and securities eligible as member collateral can be found on page 11 of the MPP.

Contact Jodie Stephens in the Collateral Department at 800.544.3452, ext. 1111 or by email at jstephens@fhlbdm.com with questions about using GSLs as collateral.

Advance Pricing Components
The MPP now includes clarification of the components used for FHLB Des Moines advance pricing. A component of the Bank’s advance pricing methodology is a “risk adjustment” which ensures a positive spread and also compensates for increased liquidity, market and credit risks.

The specific components included in the Bank’s advance pricing can be found on pages 17-18 of the MPP.

For questions about advance pricing, contact Dave Waldron, Director of Commodity Sales, at 800.544.3452, ext. 1074 or by email at dwaldron@fhlbdm.com.