Federal Home Loan Bank Of Des Moines Boosts Housing Credit Liquidity

The National Association of Home Builders (NAHB) today applauded the successful efforts of the Federal Home Loan Bank of Des Moines to include single family construction loans as eligible collateral for member loans.

The Des Moines Bank received approval from its regulator, the Federal Housing Finance Board, on September 10 to accept one-to-four family construction loans as part of a basket of other real estate collateral that may back the Bank s secured lending (called advances) to member financial institutions in its district, which includes Iowa, Minnesota, Missouri, North Dakota and South Dakota.

With this regulatory approval, the Des Moines Bank can proceed in developing specific collateral criteria with the intent of implementing its expanded authority in the near future.
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