The collateral verification review process is overseen by a dedicated team of collateral experts, who partner with members to ensure accuracy and efficiency.
Members can streamline the collateral verification process with these Excel tips on
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A member’s credit rating and FHLB Dallas' risk analysis determine whether a member may borrow under a blanket lien status or custody status.
Members accorded blanket collateral status may borrow up to a specified percentage of the book value of eligible collateral without specifically listing, segregating, or delivering collateral to FHLB Dallas.
Custody status requires the delivery of qualifying collateral to secure existing or future extensions of credit. This collateral may be eligible loans or securities, or the member may purchase a CD from FHLB Dallas.
Members with blanket lien status are subject to collateral verification reviews. Collateral reviews establish a member's loan eligibility percentage and document exception rates.
Collateral verifications are conducted as desktop reviews and onsite reviews. The frequency and type of collateral review is based on each member's average daily borrowings that utilize their blanket lien within the previous calendar year. All collateral reviews are conducted by Collateral Services department staff.
This collateral service is only required in specific circumstances. FHLB Dallas does not require a collateral verification for a member with no Blanket Lien usage during the prior calendar year. Typically, a member will not have Blanket Lien usage during a calendar year because:
Additional information related to collateral transactions may be found in the Collateral section in the Products and Services section of the Guides and Forms page of the Resource Center and in Collateral Verifications Helpful Resources below.
Collateral verification is conducted on two levels — onsite reviews and trial balance reviews.
Collateral Vault Operations enables Blanket and Custody Status members to potentially increase borrowing capacity by pledging loans to FHLB Dallas. A security interest is held on the pledged collateral for the duration of the borrowing period.
Requirements for pledging collateral are outlined in the
Member Products and Credit Policy.Member borrowing capacity for pledged collateral is updated by comparing the unpaid balance of the loan collateral against the unpaid balance the member has in outstanding obligations to FHLB Dallas. To access the available credit programs, members' qualifying collateral is stored onsite, or, if applicable, is listed at FHLB Dallas.
Members who elect to deliver collateral undergo a two-step process in pledging a loan. Members prepare and submit the required loan documentation package to FHLB Dallas for each delivered loan, as well as an electronic file (see
Delivered Loans Add Template document) that contains all of the descriptive information of the loans that are being delivered, which is then submitted.
Members who elect to list loans will submit an electronic file (see Listed Loans Add Template document). More detailed information on this process is found in the
Loan Pledging Instructions. For complete instructions on adding collateral, please reference the instructions under the "Collateral Add" tab in the Collateral section of SecureConnect.
For loans pledged to the FHLB Dallas Vault to continue with receiving loan value, members are required to submit a monthly update for all loans that have been pledged as collateral.
Beginning each month, an updated list of the member's pledged collateral is available via
SecureConnect in the "Collateral Monthly Update" tab. A member's update file is submitted via
SecureConnect with current information on each loan prior to the 21st of each month to prevent a potential loss of value.
Once FHLB Dallas receives the uploaded monthly update file, detailed reports will be provided that identify the condition of the member's pledged notes in the "Reports" tab of
SecureConnect. For complete instructions on updating collateral, please see the instructions on the "Monthly Update" tab in the Collateral section of
To request the release of collateral, members must request a Release of Collateral through
SecureConnect. To release the collateral for each loan, the member must have sufficient availability to offset any outstanding obligations. For complete instructions on releasing collateral, please see the instructions under the "Request for Release" tab in the Collateral section of
Small Business/Small Farm
$10 per item
$3,000 + expenses