At its December meeting, the board of directors approved a reduction in the lending value from 74 to 67 percent for multifamily real estate collateral pledged by blanket pledge members. The reduced lending value will be effective with the Dec. 31, 2024, Qualifying Collateral Determination (QCD) form filed in first quarter of 2025.

We made this change as a result of a new mid-year lending value review process designed to ensure the sufficiency of lending values in a stressed collateral liquidation scenario. In our analysis of the impact of the change, we found no significant impact to our members with the lending value reduction. While we do not expect any members to be in a negative collateral position, we are providing notice to help you plan as you pledge your collateral in future quarters.

 

The change is reflected in the online Member Products and Services Guide. If you have any questions, please contact Josh Clark, chief credit officer, Tom Bliss, director of credit administration, or Dedra Duran-Gray, director of financial services, at 785.233.0507.