FHLBank Cites Examiner Concerns

The Des Moines Federal Home Loan Bank says examiners have raised issues related to its operations and internal controls, which could result in a future cut in dividends.The Iowa-based FHLBank also said it is unlikely to meet an Aug. 29 deadline for filing its first quarterly financial statement with the Securities and Exchange Commission, as required by its primary regulator -- the Federal Housing Finance Board. The bank's board of directors has formed an internal review committee to address the issues raised by Finance Board examiners. "The bank also is reviewing its retained earnings policy and may make changes to the policy, which could result in lower dividends in the future," the FHLBank said. The Des Moines bank, which participates in the FHLBank Mortgage Partnership Finance program, has $49.0 billion in total assets and $15.1 billion in mortgage loans, according to its 2004 annual report. Spokeswoman Nicky Schissel said she couldn't comment on whether the examiners raised any questions regarding the mortgage portfolio. "The internal review committee has just begun to do their work," she said.