April 9, 2010
Contact: Eric Amig - (212) 441-6807
Brian Finnegan - (212) 441-6877
FHLBNY Announces $250 Million in Disaster Relief Funds
New York, NY — The Federal Home Loan Bank of New York (“FHLBNY”) announced today that, in response to the damage done to many local communities due to recent severe weather, the FHLBNY has committed to provide up to $250 million in disaster relief loans to begin the process of rebuilding communities designated by FEMA as disaster areas. The funds are being made available by the FHLBNY through its Community Lending Programs (“CLP”) to be used as immediate gap financing while insurance settlements are being worked out.
“In any disaster, the speed of the response is critical,” said Alfred A. DelliBovi, President and CEO of the FHLBNY. “The funds we are making available today will allow our members to make an immediate, positive impact on recovery efforts, while providing the flexibility our members need to suit these efforts to the individual communities they serve. These members remain fully committed to serving their customers and neighbors during these difficult times.”
The $250 million CLP commitment can specifically be used for housing, small business and economic development lending. In addition, these funds can be used to support disaster relief financing activities, regardless of income status, for affected communities. The FHLBNY’s member-lenders can tap these low-cost loans to meet the short-, medium-, and long-term funding needs of the following FEMA-designated communities:
- New Jersey: Atlantic, Bergen, Burlington, Camden, Cape May, Cumberland, Essex, Gloucester, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Salem, Somerset, and Union counties; and
- New York: Allegany, Cattaraugus, Chautauqua, Chenango, Cortland, Erie, Nassau and Suffolk counties.
Federal Home Loan Bank of New York
The Federal Home Loan Bank of New York is a Congressionally chartered, wholesale Bank. It is part of the Federal Home Loan Bank System, a national wholesale banking network of 12 regional, stockholder-owned banks. The FHLB of New York currently serves over 330 financial institutions in New Jersey, New York, Puerto Rico, and the U.S. Virgin Islands. The mission of the Federal Home Loan Banks is to support the efforts of local members to help provide financing for America’s homebuyers.
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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 on 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.