Pledge Manager is used by financial institutions to manage the collateral they pledge to their FHLBank, Federal Reserve Bank (FRB BIC), and others.
Collateral eligibility made easy.
With a simple click - or even easier, an automated process - loans are updated and processed for FHLB eligibility and eligibility for other funding sources like the FRB BIC program. No more manipulation of spreadsheets or other complex processes to try and determine eligible collateral. Pledge Manager has FHLB Collateral Eligibility rules built right in.
Understanding collateral eligibility.
Ineligible collateral issues are categorized allowing for detail review and analysis. And, importantly, ineligible collateral will not be pledged or included in your submission format. This detailed insight allows you understand issues preventing loans from being pledged or eligible.
Convert complex data sources.
Preparing data from multiple sources is an easy task with Pledge Manager’s ability to transform and convert data of all types to standardized formats required by the FHLB and FRB BIC. Complex commercial and business loan feeds are easily imported and prepared for analysis and submission. Pledge Manager includes a graphical tool for data conversion, merging of data, and augmentation of data (for missing data elements) that allow for quick changes when new codes or unexpected data appear.
Maximize capital.
Pledge Manager’s unique process eliminates duplicate pledging of loans with both automatic and manual pledging options. Automatic pledging allows loans to move freely between the FHLB and FRB based on collateral eligibility, maximizing available capital. Manual pledging allows loans to be manually set by users with recommendations provided by Pledge Manager.
Meet regulatory and audit requirements.
Automated processing of files eliminates the manual movement of data, which helps meet regulatory and audit requirements. All jobs and changes are logged, and collateral eligibility logic, submission criteria, rules, and formulas are consistent and clearly auditable. Screens allow for review of file details to ensure accuracy.
Automatic FHLB pledged collateral submission formats.
Pledge Manager includes maps to import data from your source applications (such as loan servicing and origination systems) for analysis and submission. Collateral submission processes evaluate the collateral eligibility and prepare the data for each funding destination in the correct format with all required data included. Fully audited changes to pledge submission content can be made in minutes, requiring no programming.
Easy access to loan documents.
Scanned loan documents can be uploaded into Pledge Manager for access from loan management screens, displayed in document inquiries, and more. Documents are stored in the cloud and can easily be accessed at a loan level, and, with multi-loan exports, a ZIP file of documents can be created for lending review audits.
Pledge Management benefits:
-
Streamline pledge management of the FHLB/FRB process for residential mortgages, commercial mortgages, construction loans, small business loans, student loans, securities, etc.
-
Automatically convert your data into required FHLB and FRB BIC standards.
-
Automatic submission of loan level data.
-
Optimize pledging of collateral to maximize borrowing capacity.
-
Automate the process of pre-qualifying mortgages for pledge to FHLB or FRB during or after the loan origination process.
-
Don’t pledge collateral to FHLB if not qualified. Doing so may result in losing the ability to re-pledge to an alternative funding channel for months.
-
-
Automated pledging process evaluates eligibility and submits to FHLB when collateral becomes eligible.
-
As an example, a loan might be ineligible to pledge today, but six months from now becomes eligible. No need to remember – the system will automatically re-evaluate eligibility and submit when it’s eligible.
-
-
Pledge Manager can help with pledging requirements for public deposits.
-
Community Reinvestment Act targets are easier to reach with Pledge Manager by using whole loans rather than MBSs.