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:
May 7, 2020 — FHLBNY to Accept PPP Loans as Eligible Collateral

April 1, 2020 — Stability in a Crisis

March 13, 2020 — Novel COVID-19 update

Announcing the FHLBNY COVID-19 Relief Program

In response to the COVID-19 pandemic, the FHLBNY has announced a targeted suite of tools to assist its members and community partners to respond to the needs of individuals, households, non-profit organizations and small businesses across the FHLBNY’s District. The FHLBNY’s COVID-19 Relief Program includes $1 billion in disaster relief funding, $5 million in small business grants, and $500,000 in charitable donations, all of which are scheduled to be deployed in May 2020. In addition to these near-term efforts, the FHLBNY will invest $1 million to provide zero percent funding to members lending to small businesses through its Business Development Advance when the product is launched later in the year. Read full press release here.

Download the Presentation
May 7th COVID-19 Relief Program Webinar

Disaster Relief Funding
Launched May 1, 2020

Small Business Grant Program
Launched May 12, 2020

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.

Mortgage Partnership Finance^® (MPF) Program Update
MPF periodically issues announcements and updates on the MPF products, published through All Regs, an online service that publishes various mortgage lending industry resources and the MPF website. View the most recent announcements regarding the potential impact of COVID-19 in the sidebar on this page.

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.

Wire Transfer Personal Identification (PIN) Renewal
To ensure that our members do not experience any disruption in initiating telephone wire transfers, and to stay ahead of member users’ PIN expiry, the Bank sent via overnight mail those “PIN Mailers” for those member users whose PIN is set to expire by mid-July, 2020. As part of our security protocol, a PIN is one of the security requirements to perform a wire transfer transaction telephonically. As some members may have activated their Business Continuity plans, the Bank will accept electronically the signed PIN mailer signature form saved as a PDF. Please ensure that those staff who receive a “PIN Mailer” sign and return the appropriate portion to [email protected]. If you have any questions, please contact the Electronic Payments Group at (800) 824-2426.

FAQs Regarding COVID-19

What is the FHLBNY’s Business Continuity program? How is the FHLBNY addressing COVID-19 with their workforce?

The FHLBNY is well-positioned to continue to meet member needs through a prolonged disruption. As part of our Business Continuity planning, the FHLBNY has a comprehensive and flexible pandemic plan in place—including significant remote capabilities to ensure that we are able to continue to operate in the event of complete office inaccessibility. The FHLBNY is focused on remaining a reliable partner to our members; we will continue to keep members updated as developments warrant.

Is there any threat of liquidity not being available? What advance terms are available?

During times of market stress, the Federal Home Loan Bank (FHLB) System generally benefits from a “flight to safety” where there is heightened investor interest in our bond issuances due to the perceived safety of the investment. Like in the last financial crisis, we have deep access to short-term liquidity and have also been successful in meeting member requests for longer-term advances. We anticipate that we will have ample liquidity throughout this crisis to meet the needs of our membership.

Does the FHLBNY have a policy on accepting mortgages which are part of a COVID-19-related forbearance program?

Forbearance programs will vary from member to member, and we anticipate that most mortgages under these programs will be acceptable as eligible collateral. Please send requests to your Relationship Manager for coordination with the collateral team using the contact information provided on this page.

Can members pledge mortgages which were closed using non-standard practices due to complications associated with the COVID-19 crisis (i.e non-standard appraisals, title insurance, e-recording, etc.)? Is there specific criteria members need to follow for labeling and pledging these loans, or are they treated as “normal”?

Unique circumstances will be evaluated and accommodated on a case-by-case basis. Please consult with your Relationship Manager for further information using the contact information provided on this page.

Can we submit an interim “tape” with a larger amount of qualifying loans at this time rather than having to wait until month end?

Yes, members may submit interim tapes; they will be processed in the order in which they were received.

Will the FHLBNY be making additional haircuts on collateral?

Haircuts are constantly evaluated during times of market stress and could be subject to changes based on volatility of underlying collateral values.

Does the FHLBNY accept SBA-backed Paycheck Protection Program (PPP) loans as collateral?

The FHLBNY has received inquiries from many members regarding the acceptance of PPP loans as collateral. We continue to work with our regulator, the Federal Housing Finance Agency, on this matter, and will notify all members once a conclusion is reached. We are assessing risk factors including the illiquidity of and lack of secondary market for PPP loans, and we expect to have a resolution shortly. Finally, if your institution wants to pledge its PPP loans to the Federal Reserve Bank, we are working on an agreement to subordinate the FHLBNY’s interest in PPP collateral, if any, to the Federal Reserve Bank.

Will onsite reviews be conducted throughout the COVID-19 crisis?

To the degree possible, we will continue to conduct collateral reviews remotely and will reschedule reviews to be conducted on-site for later in the year.

Does the FHLBNY accept electronic signatures?

During the current COVID-19 crisis, electronic signatures on certain forms will temporarily be allowable. Please consult with your Relationship Manager to determine which forms are eligible for electronic signatures using the contact information provided on this page.

Will a FHLBNY Disaster Relief program be made available?

We are in the process of evaluating the use of Disaster Relief Funding for the COVID-19 crisis.

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.

Key Contacts

Relationship Managers:
(212) 441-6700

Member Services Desk:
(212) 441-6600 or
(800) 546-5101, option 1

[email protected]

COVID-19
Related MPF^®
Announcements

MPF Servicing Update I

MPF Servicing Updates III

Impact of COVID-19 on Originations of MPF Traditional (Conventional) Loans

For all for MPF Program Announcements

Click Here

For upcoming MPF COVID-19 Related Webinars

Click Here

Note: It is not the role of the FHLBNY to provide advice on which advances, if any, should be submitted for modification. Therefore, entire portfolios cannot be submitted for analysis, and each modification request must be identified individually by an advance number.

Disclaimer: Notwithstanding any language to the contrary, nothing contained in these disclosures is intended to constitute an offer, inducement, promise, or contract of any kind. Any product descriptions and pricing may be subject to change without notice.

The content provided in these disclosures is presented as a courtesy to be used only for informational purposes and is not represented to be error free. The FHLBNY makes no representations or warranties of any kind with respect to the content contained herein, such representations and warranties being expressly disclaimed. The FHLBNY is not a financial or investment advisor.

Moreover, the FHLBNY does not represent or warrant that the content of these disclosures is accurate, complete or current for any specific or particular purpose or application. It is not intended to provide nor should anyone consider that it provides legal, accounting, tax or other advice. Such advice should only be rendered in reference to the particular facts and circumstances appropriate to each situation. The FHLBNY encourages you to contact appropriate professional(s) and consultant(s) to assess your specific needs and circumstances and to render such advice accordingly. In addition, the FHLBNY is not endorsing or recommending the use of the means or methods contained in or through these disclosures for any special or particular purpose.

It is solely your responsibility to evaluate the risks or merits of any funding or investment strategy. In no event will FHLBNY or any of its officers, directors or employees be liable for any damages — whether direct, indirect, special, general, consequential, for alleged lost profits, or otherwise – that might result from any use of or reliance on these materials.