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Bulletin No.: 2017-33
December 14, 2017


SUBJECT: Revision to Loan Collateral Values Calculation

The Federal Home Loan Bank of Dallas (Bank) has revised its loan collateral values for blanket lien members, effective December 19, 2017. The revision is based on the Bank's newly improved valuation framework which differentiates risks between prime and subprime/nontraditional single-family residential loan collateral.

The revision can be found in Section III C.2.g of the Bank's revised Member Products and Credit Policy, and the definition of subprime and nontraditional one-to-four family residential loans collateral can be found in Exhibit D of the same Policy. The revision is only applicable to the Bank's blanket lien members, for whom the collateral value of prime one-to-four family residential loans will increase to 80 percent from 75 percent, and the collateral value of subprime and nontraditional one-to-four family residential loans will decrease to 65 percent from 75 percent.

For additional information or to discuss the Bank's collateral valuation process, please contact the Collateral Services department at 800.541.0597.




Michael Zheng                                                             
SVP, Chief Credit Officer