Mortgage settlements lift Federal Home Loan Bank of Des Moines income
The Federal Home Loan Bank of Des Moines recorded net income of $74 million and $493 million, respectively, for the three and nine months ended Sept. 30, compared with net income of $39 million and $100 million for the same periods in 2015, according to a release. Nine-month profits were boosted by $337 million of net gains on litigation settlements on private-label mortgage-backed securities that were acquired through the bank’s merger with the Federal Home Loan Bank of Seattle. The bank did not record any litigation settlement gains in the third quarter. Advances for residential loans issued by other financial institutions totaled $125.8 billion, making up the bank’s largest asset class. As a result of the bank’s 2016 year-to-date earnings, it accrued $56 million for use in its Affordable Housing Program. Through the same period in 2015, the Federal Home Loan Bank of Des Moines accrued $11 million for the program.