Community Development Special Finance Program Pilot

Pilot Program Encourages CDFI Single-Family Lending with Collateral Haircut

The Community Development Special Finance Program (CDSFP) pilot was created by FHLB Dallas to increase member support for single-family housing lending activity. Through the pilot, FHLB Dallas will provide a more favorable haircut to members who pledge single-family residential loans to certain income-qualified borrowers.

The pilot supports FHLB Dallas members with a reduced collateral haircut (12 percent) for qualifying mortgage loans to certain income qualified borrowers, known as CDSFP income qualified single-family residential loans (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. It will remain open for two years or until $200 million in qualifying collateral is pledged, whichever occurs first.

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 other members. After six months, the remaining capacity under the $200 million program cap will be available to all members.