On February 23, 2021, FHLBank Indianapolis issued its fourth-quarter 2020 earnings release.

Our Board of Directors declared dividends on Class B-2 activity-based capital stock and Class B-1 non-activity-based stock at annualized rates of 3.00% and 1.75%, respectively. The dividends were paid in cash on February 24, 2021.

"We're pleased to pay out a higher Class B-2 activity-based dividend rate as a reward to members that use FHLBank Indianapolis in support of their liquidity needs," President and CEO Cindy Konich said. "Notably, now members approved to participate in our Mortgage Purchase Program can also elect to acquire activity-based stock reflective of their MPP transactions."

Highlights include:

Click here for the published fourth quarter 2020 earnings release: FHLBank Indianapolis Declares Q4 2020 Dividends, Reports Earnings.

On Wednesday, March 3, FHLBank Indianapolis hosted a webinar that covered the dividend announcement and bifurcation. Topics covered included:

To view a recording of the webinar, click on the link above.

One of the biggest benefits of FHLBank Indianapolis membership is being an owner and shareholder. The FHLBanks are uniquely structured into districts where the member owners have a say in the decisions through elected board members and reap the benefits of ownership via dividends. With the new FHLBank Indianapolis Capital Plan, which went into effect September 26, 2020, dividends are now classified into B1 (non-activity) stock and B2 (activity) stock. The B2 (activity) stock can provide a higher dividend than non-activity stock. This potential increased dividend is a new factor to consider when evaluating funding cost. This article will show how to calculate the value of the potential higher dividend and highlight the online tools available on Member Link.

During the first quarter of every year, the Advances Desk staff updates each member's membership stock requirement based on year-end assets as reported in Call Report data. The calculation is subject to a minimum stock requirement of $7,500 and a maximum membership stock requirement of $5 million.

FHLBank Indianapolis is making modifications to its Overdraft Line of Credit product to continue supporting members with an efficient, same-day liquidity tool. The Overdraft Line of Credit provides the greatest flexibility for members to access same day funding by simply overdrawing their CMS accounts up to the amount of the Overdraft Line.

Per our new Capital Plan that took effect in September 2020, the Overdraft Line of Credit product qualifies for B-2 Activity Stock whether it is being used or not. Under the new plan, B-2 stock has the potential to pay a higher dividend rate than B-1 stock. You can learn more about how you can best take advantage of a partnership that pays by visiting our Capital Plan webpage or contacting your Account Manager.

March 24

2:00 - 3:30 p.m. ET

March 30

2:00 - 3:30 p.m. ET

April 1

2:00 - 3:30 p.m. ET

This year's Community Investment Workshops will be held online. The workshops have been designed to deliver essential information about our programs in an effective and streamlined manner while still facilitating networking between members and community partners.

Across three separate Zoom meeting sessions, our staff will cover our Homeownership Initiatives, Affordable Housing Program, and Community and Economic Development opportunities.

Participants will learn how to apply for these programs, and our breakout sessions will facilitate important connections between FHLBank Indianapolis members and community partners.

Click the links above to register for each event.

In just a few short weeks, FHLBank Indianapolis will announce the opening of our 2021 round. This year's applications will be due May 18, with awards announced August 13.

We are building a list of members that are open to participating in this round and willing to be part of a public list for community partners or small businesses to access. This list will send small businesses looking to grow and expand to members who are willing to sponsor their application.

If you are interested in being featured on this list, please click here to submit the most appropriate contact from your organization.

The IRS is phasing out usage of IRS Forms 4506-T and 4506T-EZ for third parties in early 2021. IRS Form 4506-C has been created for authorized Income Verification Express Service (IVES) participants to order tax transcripts with the consent of the taxpayer. As a result of these changes, we have replaced all references to IRS Form 4506-T with IRS Form 4506-C. Taxpayers may continue to use IRS Forms 4506-T and 4506T-EZ to obtain transcripts. This form must be used to request a tax transcript as of March 1, 2021.

As a reminder, lenders must ensure the form is filled out completely and accurately before the taxpayer is asked to sign the form. This will facilitate lenders' ability to obtain the required transcripts from the IRS without delay.

Advantage MPP has elected to adhere to the Fannie Mae and Freddie Mac guidance regarding temporary selling flexibilities for certain requirements such as appraisals and income documentation. For these items, Fannie Mae and Freddie Mac have extended the effective date to include mortgages with application dates through 3/31/2021. Consequently, to stay in concert with the selling flexibilities related to COVID-19, FHLBank Indianapolis has extended the effective date to 3/31/2021 as well.

As a reminder, mortgage loans must be current at the time of sale to FHLBank Indianapolis. Loans that have been placed into forbearance prior to sale are not considered current and are presently ineligible for delivery to Advantage MPP. Loans that were granted forbearance but have been fully reinstated prior to sale are considered current and are eligible for delivery to Advantage MPP.

Under previous MPP Bulletins, servicers were directed to suspend all foreclosure and eviction actions with the exception of properties that were determined to be vacant or abandoned. This moratorium on foreclosures and evictions is now being extended through 3/31/2021.

Effective March 1, 2021, the new redesigned Uniform Residential Loan Application went into effect. All participants in the Advantage Mortgage Purchase Program are expected to be transitioning to the new form including the initial and final application and the lender loan information pages. Effective November 1, 2021, the current URLA (Form 1003/Form 65) will no longer be accepted.

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