Changes made to the Member Products Policy
June 27, 2013
At its recent meeting, FHLBank Topeka’s board of directors approved changes to FHLBank’s Member Products Policy. A complete list of changes impacting members is identified below. Please note there were no changes made to collateral lending values. Details are available in the online Member Products and Services Guide (MPSG). Policy changes were effective June 21, 2013.
Available Advance Terms Extended – The maximum term available on Regular Fixed Rate Advances and Regular Fixed Rate Callable Advances has been extended from 180 months to 360 months. This change was made to assist members with funding longer-term assets, such as mortgages.
Amended Underwriting Requirements on Whole Loan Collateral
Appraisals – In March, FHLBank added an underwriting requirement requiring appraisals to be prepared by a licensed or certified appraiser for loans with an original amount of $250,000 or above. Based on members’ responses to this change, management has revised the language to require appraisals to be prepared by a licensed or certified appraiser for loans with an original amount greater than $250,000 or qualify for exemptions identified in the Interagency Appraisal and Evaluation Guidelines. The current Interagency Appraisal and Evaluation Guideline exemptions can be found by clicking here.
Cross Collateralization – Removed the underwriting requirement relating to cross collateralization. The requirement called for all notes tied to the same mortgage to be eligible and pledged to FHLBank. This requirement has been eliminated due to to common member practices of cross collateralization on commercial and agricultural loans.
If you have any questions about these changes, please contact your regional account manager or the Lending Desk at 800.809.2733.