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December 19, 2022 Changes to Member Products Policy

At its meeting last week, FHLBank Topeka’s board of directors approved changes to its Member Products Policy. Details are available in the online Member Products and Services Guide (MPSG) and are effective Jan. 1, 2023. 

Adjustments to First and Second Lien Language (within applicable sections of I. Loans and IV. Other Real Estate-Related Collateral, including home equity lines of credit and home equity loans):
Lien enforceability can be evidenced through a few different options, such as title insurance policy, title opinion, independent third-party title search, etc. The language was clarified to note that if a lien search does not cite the subject mortgage with the applicable lien status, the loan’s documentation should confirm subordinations, releases or title insurance endorsement ensuring the applicable lien position.  

Removal of FDIC and NCUA Guaranteed Notes (section II. Securities, item 12):
Both the Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA) guaranteed loan programs were created from the Great Financial Crisis. Neither program has any outstanding debt to support securities pledged by members. As a result, the policy retires these forms of guaranteed notes. 

We appreciate your partnership. Please remember that we moved our normal cadence on lending value changes from the fall to the spring this year. Watch for adjustments to lending values following our March 2023 board meeting. 

If you have any questions about any of these changes, please contact Lance Liby, chief credit officer, Tom Bliss, director of credit administration, or Dedra Duran-Gray, director of financial services, at 785.233.0507.

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