Supplemental Credit for LMI Loans Sold into MAP®
The FHLBNY provides supplemental funding to credit enhance any qualified LMI* mortgages sold into MAP in 2026 with a Loss Coverage Ratio (LC**) greater than 1.50%. The amount needed to “buy-down” or credit enhance the mortgage’s LC to 1.50%, up to a maximum of 150 basis points, will be deposited into the Participating Financial Institution’s (PFI’s) Member Performance Account (MPA).
For example, if you sold a $250,000 LMI mortgage into MAP with an LC of 2.11%, 61 basis points, or $1,525, would be credited to your MPA. If the same mortgage had an LC of 4.0%, then the maximum credit enhancement of 150 basis points would be credited to your MPA. The supplemental credit for qualified LMI mortgages will be displayed in your monthly Loss Coverage Summary report.
LMI mortgages tend to have a higher LC, and members are required to manage the weighted average LC on their respective Master Commitment to 1.50% or lower. Offering this supplemental funding to help credit enhance LMI mortgages further aligns MAP with our mission, making it more advantageous for PFIs to book and then sell LMI mortgages to the FHLBNY.
* “LMI” refers to primary occupancy conventional conforming loans where the qualifying income of the loan is 80% or less than the estimated Area Median Income (AMI).
** Loss Coverage Ratio is currently calculated using the S&P Global Ratings’ LEVELS model.
Note: The funding for LMI Supplemental Credit Enhancement will be distributed on a first-come, first-served basis until the allotted funds are exhausted.
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Relationship Managers
(212) 441-6700
FHLBNY@fhlbny.com
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