Beginning Thursday, October 1, 2020, the Federal Home Loan Bank of Chicago (FHLBank Chicago) will begin accepting construction, land development, and other land loans as eligible collateral from our depository members. This change further expands your collateral opportunities with us!
Construction Loans Now Eligible
The additional collateral lendable value provided by these newly eligible loan types can be used to support a variety of activities with FHLBank Chicago or serve as an additional source of contingent liquidity. The following loan types will be eligible:
- First lien 1-4 family and other construction loans
- First lien land development loans
- Other first lien land loans, including vacant land loans
Reporting for construction, land development, and other lands loans will mirror those for Commercial Real Estate (CRE).
- If your member institution is eligible to report CRE on a Qualified Collateral Reporting (QCR) basis, the same is permitted for construction, land development, and other lands loans.
- All other eligible members will be required to list or deliver loans based on their institutional risk rating.
Learn More at Our Weekly Market Update Webinar on October 8, 2020
On Thursday, October 8, 2020, our collateral team will join our Weekly Market Update webinar to highlight the eligibility of construction loans and answer any questions from our members. To register you and your team, visit the webinar registration page, click the drop down menu, and select the October 8, 2020 date.
Reach Out to Us with Questions
For more details on the acceptance of construction loans, please reach out to your Sales Director or our collateral team at firstname.lastname@example.org.