Can members pledge collateral purchased from or serviced by parties other than the member?
• • Yes. Members may pledge to the HLB mortgage collateral that is purchased from or serviced by parties other than the member, or held by a custodian other than the member, including their own banking subsidiaries and trust operations. Members who need to pledge collateral purchased or serviced by other parties are required to provide the HLB with a copy of the Purchase, Servicing and/or Custodian Agreements. A Collateral Rights Agreement recognizing the HLB´s interest in the collateral must be executed by the third party. You may find a copy of the Purchase Pool Guidelines on the HLB´s website under Bank Forms & Agreements in the Collateral Forms section.
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