• January 26, 2024
• Bulletin No: B2024-02

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

The pilot will support FHLB Dallas members, with a reduced collateral haircut (12 percent) for qualifying mortgage loans to certain income qualified borrowers (CDSFP Income Qualified Single-Family Residential loans or “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.

To receive the reduced haircut, the loans must meet the following requirements:
 

• Borrower income equal to or below 115 percent of the area median income at the time of origination
  • Certified by the member
• Compliance with all loan collateral eligibility and documentation requirements specified in Bank policies

• Total collateral pledged by a member through this program cannot exceed the lesser of $20 million or 35 percent of the member’s total assets
• Participating members must maintain an internal Bank credit rating of D or better