COVID-19 UPDATES
FHLBNY COVID-19 Updates and Resources
Amid the global Novel Coronavirus (COVID-19) pandemic, the stability and reliability of our franchise is paramount to the value we offer our members. In any and all operating environments, the FHLBNY is focused on remaining a reliable partner and source of information to our members.
To help your institution better prepare and respond to this evolving situation, we will keep this page updated as a dedicated resource for important member updates and curated information. Should you have questions, please refer to our key contacts.
Special Reports from the FHLBNY President, José R. González:
July 2, 2020 — A Vital ConversationMay 7, 2020 — FHLBNY to Accept PPP Loans as Eligible Collateral
FHLBNY Important Announcements
Collateral Guide Update
Paycheck Protection Program Loans are Now Eligible Collateral
On April 23, 2020, the FHLBNY’s regulator, the Federal Housing Finance Agency (FHFA), provided guidance on the Federal Home Loan Banks’ acceptance of Paycheck Protection Program (PPP) loans as collateral, subject to certain parameters. As part of our COVID-19 relief efforts, we are pleased to announce that the FHLBNY will accept PPP loans as eligible collateral from member institutions, subject to certain criteria relating to the FHFA’s guidance and the FHLBNY’s own internal review processes. This change is effective as of May 7, 2020.
To determine if your institution is eligible to pledge these loans as collateral, please contact your Relationship Manager at (212) 441-6700, or Anthony Kobel, manager of the FHLBNY’s Collateral Analysis Group, at (201) 356-1069.
The Pledge Form for this collateral type can be found here. It is our hope that by accepting this collateral, we remove some of the challenges our members may face in this area, and make it easier to keep funding flowing into the communities we all serve.
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The FHLBNY will provide additional support to our members through the acceptance of mortgage loans that have been extended forbearance by our members. Please contact your Relationship Manager or Collateral Analysis at [email protected] to ensure that your proposed forbearance programs fall within the approved parameters. To view the Collateral Guide, click here.
LIBOR-SOFR Transition Guidance Update
On March 16, 2020, the FHFA extended to June 30, 2020 the FHLBanks’ ability to enter into LIBOR-based instruments that mature after December 31, 2021, except for investments and option embedded products. To view the full bulletin, click here.
Municipal Letter of Credit (MULOC) Process Update
In supporting our members municipal deposit programs, the FHLBNY has instituted an alternate MULOC process, as many beneficiaries’ staff may not be in the office to receive overnight mail. If you would like additional information, please call your Relationship Manager at (212) 441-6700.
December 1, 2021 Update: In conjunction with FHLBNY’s resumption of normal business practices, we will resume our policy of providing the original Municipal Letter of Credit directly to the beneficiary starting on December 1, 2021.
FAQs Regarding COVID-19
Regulatory Guidance and Resources
- Federal Housing Finance Agency
Mortgage help for homeowners impacted by the COVID-19. - Federal Emergency Management Agency (FEMA)
FEMA’s response to COVID-19. - NY Department of Financial Services
Industry guidance, information and measures New Yorkers can take to keep safe. - Office of the Comptroller of the Currency (OCC)
OCC’s response to COVID-19. - State of New Jersey Department of Banking and Insurance
Department resources, bulletins, and latest press releases regarding the COVID-19 outbreak.
If you are a member and have any questions on the potential impact of COVID-19 to your institution, we are here to help. Please contact a Relationship Manager at (212) 441-6700
or a Member Services Representative at 1-800-546-5101, option 1.