President's Report

October 2, 2007

Advances Climb to $74.5 Billion

During the month of September 2007, the Federal Home Loan Bank of New York experienced another extraordinary increase in lending demand from member lenders. On August 31st, the advance balance was $66.5 billion. On September 28th, the balance stood at a record high of $74.5 billion.

This 12% increase in advances (surpassing August’s 11% gain) is the single largest one-month increase for the Home Loan Bank and for our members.

The 2/28 loans, the “liar” loans, the “ninja” loans, the murky securities, the fly-by-night brokers are history.

This increased advance activity is another indication that a strong demand for mortgage credit is being filled by our community-based member lenders. Credit markets and consumers now realize the value of community lenders who are able to close loans in all market environments because of their own responsible lending practices and their access to reliable FHLBank funding.

The ability to provide liquidity efficiently is also seen in the Systemwide advance numbers reported today by the FHLBank’s Office of Finance.

Regrettably, the subprime problem is not about the availability of mortgages for creditworthy borrowers. The problem is the unsuitable loans that have already been made to borrowers and that may need to be modified or recast -- loans not originated by lenders who are regulated by the OCC, the OTS, the FDIC, the NCUA, or a state banking department.

As I pointed out in my September 4 Report, the lesson that needs to be remembered is that we have a network of regulated, established community lenders who have a proven track record of making good mortgages that millions of people live with every day.  Increasing the ability of Fannie Mae and Freddie Mac to compete in the primary market with our members is not a solution to the subprime problem.

2007 FHLBNY Board of Directors Ballots in the Mail

On Monday, October 1, 2007, election ballots were mailed to the Chief Executive Officers of all eligible New Jersey and New York shareholder institutions participating in the 2007 election of Federal Home Loan Bank directors. Two seats from New Jersey and two seats from New York are up for election this year. Each of the individuals elected will serve a three-year term starting on January 1, 2008.

This year’s New York ballot will be somewhat unusual. There are a total of two candidates to fill the two seats on the Board that will become vacant at the end of 2007. Both candidates will be seated on the Board for a term scheduled to end on December 31, 2010. However, there will still be a need for an election in order to determine who will take the open “guaranteed” seat on the Board and who will take the open “non-guaranteed” seat. The candidate who receives the higher number of votes will take the “guaranteed” seat; the other candidate will take the “non-guaranteed” seat.

The deadline for receiving voting ballots for the 2007 FHLBNY Director elections is November 1, 2007, at 5:00 p.m. Please be sure to return your ballot to:

FHLBNY Director Elections
Federal Home Loan Bank of New York
101 Park Avenue
New York, NY 10178-0599

If you have any questions, please call Barbara Sperrazza, Corporate Secretary, at (212) 441-6819.

I would also like to thank each stockholder for your business..


Alfred A. DelliBovi
President & CEO

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Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This report may contain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. These statements may use forward-looking terms, such as “projected,” “expects,” “may,” or their negatives or other variations of these terms. The Bank cautions that, by their nature, forward-looking statements involve risk or uncertainty and that actual results could differ materially from those expressed or implied in these forward-looking statements or could affect the extent to which a particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties including, but not limited to, regulatory and accounting rule adjustments or requirements, changes in interest rates, changes in projected business volumes, changes in prepayment speeds on mortgage assets, the cost of our funding, changes in our membership profile, the withdrawal of one or more large members, competitive pressures, shifts in demand for our products, and general economic conditions. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

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