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Tarrant County HFC votes to broaden investment options, swaps collateral with JPMorgan; defers Chase online fee
Summary
The Tarrant County Housing Finance Corporation voted to broaden how it invests funds, approved a substitution of depository collateral with JPMorgan Chase and authorized participation in a higher-yield tech-pool account, while taking no action on a $3,600-a-year Chase Connect online access product.
The Tarrant County Housing Finance Corporation voted to broaden how it invests funds, approved a substitution of depository collateral with JPMorgan Chase and authorized participation in a higher-yield tech-pool account, while taking no action on a $3,600-a-year Chase Connect online access product.
The board approved the change to the HFC’s investment methodology to allow staff to consider pooled investments (TexPool) and other county-style investment vehicles instead of leaving funds parked in multiple local certificates of deposit. Miss Buchanan, the HFC financial presenter, said the change would give staff flexibility and reduce administrative hurdles that previously prevented timely rollovers and adjustments. "I'll be happy to answer any questions," Buchanan said during the presentation.
Why it matters: Under the current process the HFC keeps funds in multiple local CDs, which requires physical visits and individual signers and has prevented timely rollovers when officers had not been updated. The new approach lets staff consider pooled products that typically pay higher yields and permits faster transactions.
Key actions taken: The board unanimously approved (motion and second) the change in investment methodology; it also unanimously approved a motion to release and substitute depository collateral with JPMorgan Chase and separately authorized HFC participation in a tech-pool prime account that can include commercial paper and usually earns higher yields. The board also designated authorized representatives (the HFC investment committee members and Daniel Orth, who "works in my office," as described in the meeting) to make transactions for the tech-pool account.
On online banking access, board members questioned whether the HFC should pay $3,600 annually for Chase Connect just to get online visibility and the ability to initiate wires. The Board President (unnamed) asked, "So my question would be then, we are paying $3,600 to avoid writing 10 or less paper checks a year. Is that what we're doing?" Miss Buchanan responded that the product would allow online balance viewing, transaction initiation and wire capability and that the account currently lacked an online interface. After discussion the board elected to take no action on approving Chase Connect and asked staff to pursue further negotiation or alternatives before paying the fee.
Clarifying details: The annual Chase Connect fee disclosed in the meeting was $3,600. The tech-pool prime product under discussion includes commercial paper and typically yields higher interest than local CDs, per the presenter. Staff noted the HFC currently writes very few checks but lacks online balance and transaction visibility because the corporation is a separate legal entity from the county and uses business account products.
What’s next: Staff will pursue follow-up with Chase about online access and report back; meanwhile the HFC can move forward using pooled-investment options and the tech-pool prime product under the designated authorized representatives.
Sources: Meeting presentation and discussion by Miss Buchanan (HFC financial presenter), Board President (unnamed), and HFC staff including Daniel Orth.
