Financial institutions applying for membership in the Federal Home Loan Bank of Seattle must meet the following eligibility requirements:
- The institution must be duly organized under U.S. or state law and subject to examination
by a regulatory agency. Commercial bank and credit union applicants must be federally
- The institution must have at least 10 percent of its total assets in residential
mortgages. Community financial institutions (FDIC-insured depository institutions
with average total assets over the last three years end of less than
$1.095 billion for 2013) are exempt from this requirement. Non-depository CDFIs and
insurance companies are also exempt from this requirement but must demonstrate a
commitment to housing.
- The institution must originate or purchase first-lien residential loans with an
original maturity of at least five years or purchase and hold mortgage-backed, pass-through
securities (no CMOs or REMICs).
- The character of the institution's management and its home financing policy must
be consistent with sound and economical home lending.
- The institution's financial condition must be such that the Seattle Bank can safely
lend to it. The Seattle Bank considers an institution’s financial trends and
sufficiency of eligible collateral. Applicants must have no material audit findings
or enforcement actions in place.
- The institution must be headquartered in Alaska, Hawaii, Idaho, Montana, Oregon,
Utah, Washington, Wyoming, American Samoa, Northern Mariana Islands, or Guam.