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Member Bulletin

  • February 29, 2024
  • Bulletin No: 2024-06

Available Now: New Pilot Program That Supports Single-Family Housing Lending Activity

The Community Development Special Finance Program (CDSFP) is now available to Federal Home Loan Bank of Dallas (Bank) members. The Bank created this pilot program to increase member support for single-family home lending activity. Through the pilot program, the Bank will provide a more favorable haircut to members that pledge single-family residential loans to income-qualified borrowers.  

The pilot will support members with a reduced collateral haircut (12 percent) for qualifying mortgage loans to income-qualified borrowers (“CDSFP Qualified Loans”). The maximum amount of CDSFP Qualified Loans to be pledged under the pilot program is $200 million (after pricing and haircuts). 

The pilot begins March 1, 2024 and will continue for two years. It will be open to the pledge of qualifying collateral so long as the aggregate collateral value of loans pledged under the program is $200 million or less.

During the program’s initial six months, $150 million of the total collateral capacity will be dedicated to CDFIs and $50 million will be available to non-CDFI members. After six months, any remaining capacity under the $200 million program cap will be available to all members.

Requirements:
Loans must meet the following requirements to qualify for the reduced haircut:

  • Borrower income must be equal to or below 115 percent of the area median income at the time of origination
    • Certified by the member
  • Member must comply with all loan collateral eligibility and documentation requirements specified in Bank policies
  • Total collateral pledged by a member through this program cannot exceed the lesser of $20 million or 35 percent of the member’s total assets
  • Participating members must maintain an internal Bank credit rating of D or better

To Learn More:
You can register for a one-hour webinar at 10:00 a.m. CT on March 1. View the FAQs or contact Collateral Services at 800.541.0597 with questions. The Bank describes all pilot programs on its website. Check fhlb.com/pilots for information on other active pilot programs.

Sincerely,

 

Sanjay K. Bhasin
President and Chief Executive Officer