• January 06, 2022
• Bulletin No: 2022-02

In 2022, the Federal Home Loan Bank of Dallas (Bank) will continue to require certifications of loan collateral indexed to the London Interbank Offered Rate (LIBOR). The purpose of the LIBOR-Linked Mortgage Certification is to monitor the Bank’s exposure to loan collateral pledged by members that is indexed to LIBOR, which is currently being phased out. In anticipation of the phaseout, loan collateral linked to LIBOR with a maturity date beyond 2021 may be subject to future pricing and/or haircut adjustments. 
 
All institutions currently pledging loans indexed to LIBOR with a maturity date beyond 2021 will be required to provide a quarterly LIBOR-Linked Mortgage Certification to report the aggregate unpaid balance of such loans. Members subject to the quarterly reporting requirement will be notified in writing no later than February 28, 2022.
 
Quarterly Certification Deadlines 

• First quarter 2022 certification due on May 2, 2022
• Second quarter 2022 certification due on August 1, 2022
• Third quarter 2022 certification due on November 1, 2022
• Fourth quarter 2022 certification due on February 1, 2023

The Bank will send LIBOR Certifications for execution using digital signatures via email from <adobesign@adobesign.com>. Certifications need to be submitted to igc@fhlb.com by each quarter’s due date.

Institutions that, in 2021, reported no loans indexed to LIBOR with a maturity date beyond 2021 will be required to submit a one-time LIBOR-Linked Mortgage Certification confirming they have not acquired or originated loans indexed to LIBOR.

Separately, the Bank is required by its regulator, the Federal Housing Finance Agency, to have all members annually confirm the amount of subprime and nontraditional residential mortgage loans that have been pledged as collateral to the Bank. The Interagency Guidance Confirmation (IGC) is due no later than November 30, 2022. IGC Certifications will also be sent via email for execution using digital signatures from <adobesign@adobesign.com>.
 
Please contact Collateral Services at collateral@fhlb.com or 800.541.0597 with questions.
 
Sincerely,

Gustavo Molina
EVP and Chief Banking Operations Officer