• March 03, 2020
• Bulletin No: 2020-02

On September 27, 2019, the Federal Home Loan Bank of Dallas (Bank), in response to a supervisory letter received from the Federal Housing Finance Agency (FHFA), announced in a bulletin that the Federal Home Loan Banks (FHLBanks) would be required to report on collateral linked to the London Interbank Offered Rate (LIBOR). At the time, the FHLBanks were awaiting further direction from the FHFA regarding the application of those requirements to the FHLBanks and their members.

In a subsequent letter from the FHFA, the FHLBanks have been requested to gather from their members a certification form reflecting the unpaid principal balances of all loans indexed to LIBOR that mature after December 31, 2021 (LIBOR-Linked Mortgage Certification).

Separately, the Bank is required by the FHFA to have members annually confirm the amount of subprime and nontraditional residential mortgage loans that have been pledged as collateral to the Bank (Interagency Guidance Confirmation). 

To satisfy this request, the Bank will be collecting both the LIBOR-Linked Mortgage Certification and Interagency Guidance Confirmation as part of the collateral verification process and via email for members not scheduled for a collateral verification. All confirmations and certifications must be submitted by October 31, 2020. Members may also find links to both templates on the SecureConnect landing page at my.fhlb.com.

For more information or questions regarding these requests, please contact Collateral Services at collateral@fhlb.com or 800.541.0597, Option 2.

Sincerely,

Gustavo Molina

SVP and Chief Banking Operations Officer