2016 FHLB Des Moines
The Power of Partnership
AGENDA
– FHLB Des Moines Update
– The Power of Partnership
• Partnership in Action
–
–
–
Advances
SBPA/Standby LOC
HFA Bonds
– Exploring New Opportunities
– Leadership Summit
2
FHLB DES MOINES UPDATE
FHLB Des Moines Overview
Balances as of June 30, 2015
•
Headquartered in Des Moines,
Iowa
•
Western Office in Seattle,
Washington
•
Supports mortgage lending,
economic development and
affordable housing
•
Represented by 74 Members of
Congress and 26 Senators
•
Nearly 1,500 members
•
$68.2 billion in advances
•
$7.0 billion in mortgages
•
$4.9 billion in capital
FHLB DES MOINES UPDATE
FHLB Des Moines Results
$Millions
12/31/15
12/31/14
Change
Assets
$137,381
$95,524
$41,857
$89,173
$65,168
$24,005
$6,755
$6,562
$193
$40,167
$23,079
$17,088
$801
$720
$81
$5,625
$4,312
$1,313
$131
$121
$10
MVCS
$116.9
$123.8
($6.9)
EVCS
$123.1
$126.6
($3.5)
Advances
Mortgages (Net)
Investments
Retained Earnings
Total Capital
Net Income
FHLB DES MOINES
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The Power of Partnership
Leverage your Relationship with the FHLB Des Moines to
grow, serve and strengthen your communities
5
YOUR PARTNER FOR FUNDING
Partnership in Action
 $100,000,000 Daily Average Balance in advances to
HFAs
 $550,000,000 in outstanding Stand By Bond Purchase
Agreements (SBPA)
 $1,800,000,000 in HFA Bond Holdings
 New Opportunities to participate in our Mortgage
Partnership Finance Program (MPF)
FHLB DES MOINES
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YOUR PARTNER FOR FUNDING
Advance Products
Ease of Use
• FHLB acts as lender, custodial-agent, and source of record-keeping for
collateral pledged and funds borrowed
• Housing Associates can establish a credit line and utilize funding on a
moment’s notice
Competitive
Pricing
• FHLB advances and offer lower cost alternative relative to warehouse
financing, commercial paper and securitization
• No commitment, securitization or financing fees
• Out of pocket expenses limited to interest expense on borrowings and
collateral/account fees associated with monthly transactions
Strong
Counterparty
• FHLB and Housing Associate interests are mutually beneficial
• FHLB is a AAA counterparty, committed to providing term financing based
on collateral pledged
FHLB DES MOINES
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YOUR PARTNER FOR FUNDING
Standby Bond Purchase Agreements
Ease of Use
Competitive
Pricing
Strong
Counterparty
• FHLB requires NO collateral and acts as a guarantor of your liquidity
• Terms out to 7 years are available, with a total portfolio capacity of
$1 billion
• Available to all in district HFAs
• FHLB has continued success in pricing and retaining contracts
• FHLB and Housing Associate interests are mutually beneficial
• FHLB is a AAA counterparty, committed to providing liquidity to
investors
FHLB DES MOINES
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YOUR PARTNER FOR FUNDING
Member Bank, Standby Letters of Credit
on Behalf of Housing Associates
• A Member Standby LOC can be used to improve the credit rating on
Housing Associate transactions:
• Facilitate residential housing finance
Ease of Use
• Confirming taxable and tax-exempt housing bond issuance and taxable
non-housing bond issuance
• Utilizes Member banks collateral not Housing Associates collateral
Competitive
Pricing
• Typical costs are 30bps plus legal fees
• The FHLB credit standing and capital market access substitutes for that of
the Member and Housing Associate which helps to ensure a wide investor
acceptance
Strong
Counterparty • FHLB is a AAA counterparty, committed to providing liquidity to investors
FHLB DES MOINES
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YOUR PARTNER FOR FUNDING
HFA Bond Purchases
Ease of Use
Competitive
Pricing
Strong
Counterparty
• Majority of holding are private placements, Floating rate indexed notes
• MRB Long-term Fixed-rate
• MBS Pass-through
• Available to all in district HFAs
• FHLB has contained success in pricing through funding advantage in the
markets
• FHLB and Housing Associate interests are mutually beneficial
• FHLB is a AAA counterparty “Held to Maturity” investor
FHLB DES MOINES
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Exploring New Partnerships
for Holding or Selling
Mortgages
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FHLB DES MOINES MPF PROGRAM
MPF Program Products
The FHLB Des Moines can hold loans on our balance sheet or sell them through to Fannie
Mae, Redwood Trust or Ginnie Mae.
FHLB DES MOINES
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FHLB DES MOINES MPF PROGRAM
Fully
Delegated
Lending
Authority
Loan is
closed by
lender in
the lenders
name
Same
pricing for
all lenders
YOU
are in
Control*
No FHLB
delivery
fees
No
minimum
loan
amount
Use of 3rd
Party
Fulfillment
Services is
acceptable
Competitive
pricing
*Lender required to meet all applicable regulatory requirements.
FHLB DES MOINES
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FHLB DES MOINES MPF PROGRAM
Mortgage Sales Option With Easier Delivery and
Faster Payment
KEY
You
Your Customer
Investor
FHLBank
Conventional Loan Sales Process
Customer
applies for
a loan
You lock
and close
the loan
Send
collateral
package to
custodian
Investor
Send complete
performs
loan file to
post-close QC
investor
for each loan
You clear
each
deficiency
Loan
approved
for
purchase
Purchase
advice
issued
You& your
You
customer
Receive
Receive
Funds Funds
MPF Loan Sales Process
Customer
applies for
a loan
You lock
and close
the loan
Upload
ULDD 3.0
XML file to
eMPF Portal
You & your
customer
receive funds
Loan held by
FHLBbank or sold
to Pass Through
Investor
You send
collateral
package to
custodian
*
*Approximately 10% of loans randomly selected for post-close QC (Fannie Mae QC standards), subject to additional
discretionary requests. MPF Direct (Jumbo) loans sold via traditional loan sales process.
FHLB DES MOINES
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WHAT:
Two-day executive-level event featuring educational sessions and networking
WHO:
Financial business leaders and executives
WHERE: Radisson Blu – Mall of America, Bloomington, MN
Registration opens Summer 2016 and is complimentary to members of FHLB Des
Moines. Secure a discounted hotel room at the Radisson Blu starting at a rate of
$175/night. Call 952.881.5258 or book online using promo code FEDHOM.
FHLB DES MOINES
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THANKS
Joel Adamo
VP, Member Solutions
206.340.2433 or [email protected]
www.fhlbdm.com
FHLB DES MOINES
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