According to this FAQ, the

[TheBreeze]

According to this FAQ, the Fed will take performing subprime mortgages as collateral:

http://www.frbdiscountwindow.org/cfaq.cfm?hdrID=21&dtlID=90

So it looks like CFC can pledge their subprime mortgages so long as they are performing. Given that, does anyone have an explanation as for why they are offering such high rates on 1-year CDs when they can supposedly borrow from the Fed Discount Window at about the same rate?