Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

How is the Collateral Maintenance Level (“CML”) determined?

April 26, 2017CML collateral level maintenance

0

Posted

How is the Collateral Maintenance Level (“CML”) determined?

1 Answer

0

Posted

• • CMLs are typically determined by collateral type and are periodically evaluated for reasonableness and adjusted to reflect current market and business conditions. Standard CML ranges for securities collateral run from 103% to 125% and for mortgage collateral from 110% to 125%. However, a member’s CML may also be affected by their overall financial condition as well as any third party entities involved in the relationship between the member and the HLB.