Borrower’s Guide
Welcome to the Borrower’s Guide!
We are delighted that you have decided to take advantage of the Federal Home Loan Bank of New York’s (FHLBNY) credit products! As you know, our advances are competitively priced, with flexible features that can help your institution meet its liquidity needs.
This guide will assist you through the process of requesting an advance. You can navigate through each step on the left. At any time, you may contact your Relationship Manager or a Member Services Desk Representative and they will be happy to assist you.
As always, we value your membership in the FHLBNY and look forward to our ongoing partnership.
Not a Member? To take advantage of the FHLBNY’s credit products, a financial institution must first become a member. If you are not a member, learn how the FHLBNY can be your financial partner.
Step 1: Select the Advance(s) that best suits your institution’s needs
Our wide array of credit products is designed to meet your specific funding needs, with terms ranging from overnight to 30 years. You can also contact your Relationship Manager to discuss the best advance products for your institution.
Overnight Advances
Short-Term Advances
Medium- & Long-Term Advances
Letters of Credit
Other Credit Products, Programs & Features
Key Contacts
Relationship Managers:
(212) 441-6700
Member Services Desk:
(212) 441-6600 or
(800) 546-5101, option 1
1Link® Helpdesk:
(800) 546-5101, option 1
Overnight Advance
A quick source of liquidity to help manage daily cash flows and provide funding for various short-term uses
Advantages:
- Same-day access to funds for immediate cash needs
- Ability to borrow up to maximum borrowing capacity
- No additional borrowing limit restrictions above standard FHLBNY credit and collateral limits
- No set-up or renewal fees
- Can be initiated conveniently through 1Link®, our secure internet banking system
Adjustable-Rate Credit (ARC) Advance
Match the interest rate characteristics of your adjustable-rate loan portfolio
Advantages:
- More closely match the attributes of adjustable-rate assets with financing tied to floating rate advance funding
- Tailor to meet specific financing needs with a wide range of maturities, up to 30 years
- Link to the Secured Overnight Financing Rate (SOFR) index with the option to use Simple Averaging or Compounding interest accrual calculations
- Limit exposure to rising and falling interest rates by using embedded options (caps/floors)
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As of September 23, 2022, members are now able to embed interest-rate caps/floors into SOFR-Linked Adjustable Rate Credit Advances. Embedding SOFR Caps and Floors can help members to manage their interest expense in a variety of diverse rate environments. Other advantages include:
Currently, Structured Advances (including ARCs with a cap/floor) will be limited to $3 billion in aggregate volume, with a $2.75 billion per member limit, available on a first-come, first-served basis. At the FHLBNY’s sole discretion, structured advance parameters may potentially be adjusted based on market conditions. Please consult with the Member Services Desk. |
Fixed-Rate Advance
Achieve a wide variety of financial management goals, with maturities ranging from overnight to 30 years*
Advantages:
- Meet liquidity needs
- Fund long-term assets
- Lock in rates for future funding purposes
- Forward start dates are available
- Available with Symmetry for non Community Lending Program Advances with maturities of one year or greater and minimum advance size of $3 million
The FHLBNY also offers the Callable Fixed-Rate Advance, where the borrower has the option of prepaying funding without any penalty. Please contact a Relationship Manager for more information.
*Dependent on financial condition and member type
Repo Advance
Obtain preferential pricing when using Treasury or Agency issued Mortgage-Backed or CMO securities collateral
Advantages:
- Effectively utilize your securities portfolio as collateral and obtain improved advance pricing
- No penalties for pledging smaller blocks of securities
- Receive the same low rates for AAA-rated Agency and Non-Agency securities
- Maturities from 2 days to 10 years
- Available with Symmetry for Fixed-rate, non-Community Lending Program Advances with maturities of one year or greater and minimum advance size of $3 million
Amortizing Advance
Match the amortization characteristics of your fixed-rate mortgages and mortgage-backed security portfolios
Advantages:
- Enhance match funding of long-term assets
- Borrow fixed-rate funds with the option of customizing the amortization schedule to match a selected prepayment profile
- Maturities and amortization schedule from 1 to 30 years
Callable Advance
An advance with built-in prepayment options that can help members reduce interest rate risk and prepayment risk at minimal added cost
Advantages:
- No prepayment fees when “called” after the pre-determined lockout period
- Offers protection amidst rising rates with flexibility to lower your cost of funds in static and declining rate environments
- Tool to mitigate both interest rate and prepayment risks
For more information on how the Callable Advance can help meet your institution’s funding needs, please read this funding strategy article or download the overview.
Fixed-Rate Advance with SOFR Cap*
Combines a fixed-rate borrowing with an embedded interest-rate cap in which the rate remains fixed but may be reduced quarterly if SOFR rises above the pre-selected cap.
Advantages:
- Provides protection against rising interest rates (lowers your institution’s cost of funds as rates rise)
- Flexible medium-long-term funding option best used to extend liabilities, potentially enhance spreads, and preserve margins
- Available with Symmetry for non Community Lending Program Advances with maturities of one year or greater and minimum advance size of $5 million
*Currently, Structured Advances (including Fixed-Rate Advance with SOFR Cap) will be limited to $3 billion in aggregate volume, with a $2.75 billion per member limit, available on a first-come, first-served basis. At the FHLBNY’s sole discretion, structured advance parameters may potentially be adjusted based on market conditions. Please consult with the Member Services Desk.
Principal-Deferred Advance (PDA)
A hybrid advance product that combines elements of the Fixed-Rate and Amortizing Advance. It begins as a Fixed-Rate Advance, allowing members to choose a specific amount of time they would like to defer the principal payment of the advance up to 5 years. When the lockout or principal-deferred period ends, the advance becomes an Amortizing Advance, where the member makes principal and interest payments on the loan up to another 30 years.
Advantages:
- Valuable asset/liability management tool
- Fully amortizing (back-end) with a choice of varying balloon terms
- Mirrors characteristics of a typical construction deal with a permanent take-out
- No embedded options in the advance
For more information on how the PDA can help meet your institution’s funding needs please visit our PDA page. You can also read this funding strategy article or download the overview.
Putable Advance Modification Program
Offers the ability to potentially lower interest expense, reduce optionality in a member’s balance sheet and to better manage interest-rate and liquidity risks.
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Modifications: |
Learn more on Financial Intelligence.
Putable Advance*
A wide array of maturities and lockouts for medium- to long-term funding where the FHLBNY retains the option to terminate the advance at specified times
Advantages:
- Competitive pricing
- Customized maturities from 2 to 10 years with lockout periods ≥ 1 year
- One-time or quarterly option exercise
- Customized strikes are available
View our Putable Rate Information.
*Currently, Structured Advances (including Putable Advances) will be limited to $3 billion in aggregate volume, with a $2.75 billion per member limit, available on a first-come, first-served basis. At the FHLBNY’s sole discretion, structured advance parameters may potentially be adjusted based on market conditions. Please consult with the Member Services Desk.
Interest Rate Derivatives
Reduces income fluctuations caused by interest rate volatility
Advantages:
- Achieve asset/liability management goals
- Hedge interest rate exposure or increase the certainty of future funding costs
- Potentially lower the cost of funding
Note: Available for institutions with total assets less than $10 billion
Advance Rebate Program
Provides members with a cash rebate on a portion of the fees paid relating to the early extinguishment of eligible advances when new eligible advances are obtained within 30 calendar days1. To receive the cash rebate, the prepaid advance(s) must have a remaining term of six months or longer, and new advance(s) must have a term of six months or longer.
Advantages:
- Members receive cash rebate
- Provides additional flexibility with balance sheet management
- Strengthens and adds value to your Co-op
For more information on the Advance Rebate Program, please read this funding strategy article or download the overview.
1Advances booked under Community Lending Programs and advances with remaining maturities of less than six months are not eligible advances.
Transfer of Advances
Advances may be transferred between member institutions on a case-by-case basis. All transaction negotiations (pricing, finding qualified counterparties*, etc.) will be the sole responsibility of the respective member involved in the advance transfer. Upon notification by the respective member that the transaction is complete, the FHLBNY will transfer the advance(s) to the acquiring member and the appropriate collateral and activity-based capital stock adjustments will be made.
*To obtain transaction approval, the acquiring member will need to meet FHLBNY credit criteria and collateral requirements.
Please Note: Reduced cost of funding under FHLBNY Community Lending Programs (CLP) is available for all advances with a minimum term of one year, except Putable Advances; CLP Advances are not eligible for the SPA feature or the Advance Rebate Program; our Putables (when available), Callable, Swaps, and Letters of Credit programs require additional agreements; all credit product terms are subject to credit conditions.
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Log onto 1Link® for “live” Overnight and Short-Term Advance Rates (advances under 1 year).
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Contact the Member Services Desk at (212) 441-6600 or (800) 546-5101, option 1.
Step 2: Determine Available Collateral
Since the FHLBNY is a secured lender and all of our advances require collateral, it’s important that you know how much collateral you have at the FHLBNY prior to requesting an advance.
Members can view their Collateral Position Report on 1Link, which enumerates a member’s borrowing potential. Once you log into 1Link, click on the “Reports” tab, then scroll to the “Special Reports” section and select the “Collateral Customer Summary Report”.
Note: When you transact an advance through 1Link®, you will be able to view your available borrowing amount and your current collateral position on the same transaction screen.
Key Contacts
Relationship Managers:
(212) 441-6700
Member Services Desk:
(212) 441-6600 or
(800) 546-5101, option 1
1Link® Helpdesk:
(800) 546-5101, option 1
How do I pledge collateral?
For an overview of the collateral process, please visit our Collateral Guide.
Step 3: Initiate Your Advance
Now you are ready to initiate your first advance.* All you need is:
- Your Overnight Investment account number
- The advance product you are interested in
- The amount** and term of the advance
- The type of collateral you are pledging
- Be prepared to purchase a requisite amount of FHLBNY Capital Stock
Once you have all this information, contact a Member Services Desk Representative or your Relationship Manager to complete the advance request. You can also use 1Link® to initiate short-term advances (under one year).
Benefits of initiating short-term advances through 1Link®
- Initiate transactions conveniently from your PC with “live” advance rate updates
- Create short-term, forward-start advances
- Rollover or payoff maturing advances in a single transaction
- Request real-time rate indications on advance products, where applicable
- Access and view your current day advance transaction status any time
- Check to see which advances are maturing each day
- Verify your FHLBNY portfolio of outstanding advances, FHLBNY stockholdings and collateral availability
*In order to initiate an advance, you must be an authorized user on the Global Authorization Form.
** The FHLBNY’s current Capital Plan requires a stock purchase of 4.5% of the borrowed amount.
Key Contacts
Relationship Managers:
(212) 441-6700
Member Services Desk:
(212) 441-6600 or
(800) 546-5101, option 1
1Link® Helpdesk:
(800) 546-5101, option 1
Step 4: Receive Funds
Once the advance transaction is completed and approved by the FHLBNY, the funds will be deposited into your FHLBNY Overnight Investment Account (OIA). Using our wire transfer service, you can transfer the funds into another demand account or wire them out of your account. The fastest and most efficient way to move funds out of your demand account is by using 1Link® to initiate your wires.
When you initiate your wires through 1Link®, you can:
- Save $4 for each domestic repetitive wire out
- Save $12 each domestic non-repetitive wire out
- Save $5 for book transfers (free with 1Link®)
- Conveniently initiate current and future-dated domestic wires and book transfers right from your
PC - Receive quick confirmation for 1Link®-initiated payments
- Receive detailed wire advice for incoming and outgoing wires
- View your current day outgoing wires and book transfer transaction status anytime
- Use templates to make repetitive wire transfers easy
- Receive detailed wire information on Daily Wire Statement report
- View wires and sign all with a single signing process
Key Contacts
Relationship Managers:
(212) 441-6700
Member Services Desk:
(212) 441-6600 or
(800) 546-5101, option 1
1Link® Helpdesk:
(800) 546-5101, option 1
Key Contacts
Relationship Managers:
(212) 441-6700
Member Services Desk:
(212) 441-6600 or
(800) 546-5101, option 1
1Link® Helpdesk:
(800) 546-5101, option 1
Step 5: Review Transaction
After the transaction is completed, we will provide you with reports to help you manage your cash position with the FHLBNY. The primary report is the Daily Advice of Account Activity.
This report describes the financial activity of the prior day, including information about advances and other credit transactions, stock purchases and redemptions and securities safekeeping transactions. The Daily Advice of Account Activity is available through the FHLBNY’s 1Link® service.
In addition, the FHLBNY provides you with a Monthly Statement of Account Activity that provides general information on all debits and credits that have been posted to your OIA account. The Monthly Statement is available on 1Link® as well. Quarterly TB-13a reports are also provided to members as requested. To request a TB-13a report or a walk-through of any of the above information, please contact your Relationship Manager at [email protected].
