January 2008

 

 

The Federal Home Loan Bank of New York (“HLB”) has made two important changes:

1. Revisions to our collateral guidelines for private label securities and
2. Revisions to our Fee Schedules for Collateral, Credit, and Correspondent Services.
   

---

1. Addition of Temporary Market Value Adjustments for Non-Prime Private Label MBS
   In response to recent changes in housing and mortgage market conditions, the HLB will begin applying temporary market value adjustments [MVA] to the CML adjusted values of AAA-rated private label mortgage-backed securities. The HLB will use the rating agency collateral description to determine the appropriate security type. These temporary market value adjustments will take effect on January 28, 2008.
   
   

   Security Type	MVA
   Prime	0%
   Alt-A	2%
   Subprime	5%
   1st Lien Home Equity Loan	5%
   1st Lien HELOC	5%
   2nd Lien Home Equity Loan	10%
   2nd Lien HELOC	10%

   
   Securities Pledged for Regular and Repo Advances must have readily ascertainable pricing available from a public pricing vendor.
   
   
2. Revisions to Collateral, Credit, and Correspondent Services Fee Schedules
   The HLB has eliminated the majority of collateral-related fees along with other administrative-oriented correspondent services fees charged in support of advances activity and in the ordinary course of business. This action is taken in recognition that most credit and collateral services are needed to support the advances business and therefore, should be provided without an additional charge to the member. For activity that is considered “out of the ordinary,” the HLB may pass along these costs to members. Fee reductions and eliminations were effective January 2nd. New fees and limited fee increases will become effective February 11, 2008.
   
   Click here to view our updated fee schedules.
   
   
   Collateral Services Fees Eliminated
   
   
   • On-Site and Collateral Verification Review Fees [except in the case of out-of-the-ordinary business, out-of-district travel, or those needing external consultants].
   • Data and Media Processing Fees
   • Registration and Review Fees for Third-Party Pledge / Servicer / Custody Relationships*
   • Registration Fees for Income Producing Real Estate Collateral, Home Equity products and Loans Held for Sale
   • Review Fees for Newly Issued Private Label MBS and Private Placements*
   • E-Mail and Facsimile Fees
     
     * Legal Fees may be passed through related to documentation review.
   
   
   Correspondent Services Fees Reduced or Eliminated
   
   
   • 1Link International Outgoing Wires reduced – From $16 to $8
   • 1Link Maximum Monthly Fee reduced – From $500 to $400
   • Safekeeping Fed Book Entry Fee reduced – From $12 to $10 per item
   • Safekeeping Monthly Maintenance Fee reduced – Now $25 with unlimited securities
   • E-Mail and Facsimile Fees eliminated
   
   
   Additional Correspondent Services Fees
   
   
   • All Wire-Out Requests initiated by phone - Fee increased by $3.00 per wire
   • Merger to Non-Member Entity – Administrative Fee of $1,000 assessed.
   
   
   Credit Services Fees
   
   
   • No changes have been made for 2008

If you have any questions about the Credit and Correspondent Services fee schedules, please contact your Calling Officer or dial (888) 852-8460 for more information on Collateral Services fees.