Pledge Manager is used by financial institutions to manage the collateral they pledge to their FHLBank, the Federal Reserve Bank (FRB BIC), and others.
Collateral Eligibility Made Easy
With a simple push of a button, or an even easier automated process, loans are updated and processed for FHLB eligibility and eligibility for others 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 build 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. Graphical tool for data conversion, merging of data and augmentation of data (for missing data elements) allow for quick changes when new codes or unexpected data appear.
Pledge Manager’s unique process eliminates duplicate pledging of loans with either automated or 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 thereby helping to meet regulatory and audit requirements. All jobs and any changes are captured for audit. 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 Pledge Collateral Submission Formats
Pledge Manager comes with 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 and with the required data content. Changes to pledge submission content can be made in minutes requiring no programming and are fully audited.
Easy Access to Loan Documents
Scanned loan documents can be uploaded into Pledge Manager for access from loan screens, document inquiries and more. Stored in the cloud, documents can easily be accessed at a loan level. 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 losing the ability to re-pledge to an alternative funding channel for months.
Automated pledging process evaluate 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 – system will automatically re-evaluate eligibility and submit when it’s eligible.
Pledge Manager can help with your Public Deposits pledging requirements.
Community Reinvestment Act targets are easier to reach with Pledge Manager by using whole loans rather than MBSs.