- Overview
- Collateral Status
- Eligible Collateral
- Pledging Instructions
- Collateral Fees
- Forms and Templates
- Collateral Verifications
Overview
The primary goal of the Bank is to provide credit programs designed
to meet the funding needs of members, while maintaining the financial
integrity of the Bank. To participate in the credit programs of the
Bank, members must have sufficient qualifying collateral in place. Members
are categorized by collateral status as either Blanket Lien or Custody.
Blanket Lien
- Borrower meets all statutory and regulatory capital standards and
- Borrower meets all Bank credit underwriting standards as determined by the Bank.
Custody Status
- Borrower is an insurance company; or
- Borrower does not meet all statutory and regulatory capital standards; or
- The financial condition or controls (based on credit standards in the Bank's Credit Policy) of the borrower or any commonly controlled insured depository institution(s) are such that the Bank would be secure only if collateral is in the possession of the Bank and the interests of the Bank are fully perfected; or
- Borrower otherwise fails to meet the Bank's underwriting standards for the blanket lien.
Return to top of page The Bank may accept the following types of collateral for securing advances:
1. First Mortgage Collateral, which consists of whole, fully disbursed, residential (i.e., one- to four-family and multifamily) first-mortgage loans (excluding participations and other fractional interests or mortgage warehouse lines) that are owned by the member free and clear of any liens and encumbrances and are not past due more than 90 days. Additionally, any home mortgage loan made to any director, officer, employee, attorney, or agent of the borrowing member cannot be considered eligible collateral securing advances.
2. U.S. Government and federal agency securities including:
i. mortgage backed securities issued
or guaranteed by a federal agency; and
ii. mortgages or other loans (including securities
backed by, or representing
an equity interest in, such mortgages or loans)
that are insured or guaranteed
by the U.S. Government or a federal agency
where the insurance or
guarantee is for the direct benefit of the
holder of the mortgage or loan.
3. Term deposits from the Bank
4. Other non-securitized real estate-related collateral including commercial real estate, home equity loans, junior liens, participations and mortgage warehouse lines, as well as commercial and multifamily real estate construction. For other real estate related-collateral to be acceptable it must have a readily ascertainable value, be capable of being reliably discounted and liquidated in due course, and the Bank must be able to perfect a security interest in such collateral.
5. Securities representing undivided equity interests (e.g., shares of certain types of mutual funds) in the collateral described above.
6. For CFI's, fully secured loans to small businesses, small farms,
and small agri-businesses, or securities representing whole interests
in such secured loans.
Members may increase their borrowing capacity by delivering loans to the Bank which may receive a higher value than what they receive under Blanket Status. Members may also be required to deliver collateral if the Credit Review Committee at the Bank determines a collateral status of Custody after reviewing their financial condition.
The steps to deliver loans include:
1. Submitting the required documentation to the Bank for each delivered loan.
2. Submitting an electronic file containing descriptive information of the loans being delivered.
3. Provide updated information for each delivered loan at the end of each quarter.
Detailed information for each step is included in the Loan Pledging
Instructions document. The document can be viewed and downloaded
using Adobe Acrobat Reader. If you do not have Adobe Acrobat Reader, you
may download a free copy.
| Type | Add Price | Return Price |
| 1-4 Family Loans | $4 per item | $8 per item |
| Multifamily | $4 per item | $8 per item |
| Commercial | $10 per item | $8 per item |
| Interim Construction | $10 per item | $8 per item |
| Small Business/Small Farm | $10 per item | $8 per item |
| Listing | $2 per item | $1 per item |
| Type | Price |
| Inspections | $30 per hour, plus expenses for commercial, multifamily, or interim construction with unpaid balances of $500,000 or more |
| Research | $25 per hour, requested in writing |
| Reports | $25 per hour, report sent via mail or facsimile |
| Updates | $25 per update processed by some means other than SecureConnect |
The following forms and templates mentioned in the Loan Pledging Instructions are made available for your convenience. You can fax or e-mail the completed forms and templates to the Collateral Department as required.
Adding Collateral
To deliver/list collateral members must submit:
1. Required documents for each loan as specified in the Loan Pledging Instructions.
2. An Add Template containing descriptive information for each loan and,
3. A signed Assignment and Certification of Collateral Security for Advances Form.
Assignment and Certification
of Collateral Security for Advances
Releasing Collateral
To request a release is only necessary to provide a Request for Release of Collateral form or an electronic file. The loan number must match exactly the loan number originally assigned by the member institution when the note was delivered.
Release Template (Required when
requesting more than ten notes)
ONSITE COLLATERAL VERIFICATION PROCEDURES
Member Guidance for Onsite 2009
TRIAL BALANCE FORMAT SAMPLES
CFI Bank
CFI Thrift
LFI Bank
LFI Thrift
Credit Union
© 2005 Federal
Home Loan Bank of Dallas. All Rights Reserved.