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Bulletins

April 14, 2020

Enhancements to the Refundable Municipal Letter of Credit for Members Participating in the New Jersey Department of Banking and Insurance Governmental Unit Deposit Protection Act (GUDPA) Program

We are pleased to announce that our Members are now able to take advantage of the FHLBNY’s Refundable Municipal Letter of Credit (REMLOC) program when collateralizing municipal deposits under the New Jersey Department of Banking and Insurance (NJ DOBI) GUDPA program1.

A REMLOC provides all of the same benefits as the FHLBNY’s regular municipal letter of credit (MULOC) offering, but is designed for members to collateralize fluctuating municipal deposit balances more efficiently. A REMLOC can be booked with a notional value that is in excess of the anticipated average balance of the underlying municipal deposit accounts, where the member may potentially receive a partial refund at the end of its term for the unused portion of collateralization (difference between the average balance of the municipal deposits and the REMLOC’s notional value). Refunds may not exceed 30% of the initial fee for the REMLOC (minimum eligible refund amount is $100.00).

Key Benefits of REMLOC and MULOC

 

Enhances balance sheet liquidity by enabling members to utilize whole-loan mortgages as collateral instead of encumbering liquid securities.

 

Creates operational efficiencies as our REMLOC/MULOC notional values will not change during its term.

 

Benefits communities as REMLOCs/MULOCs allow financial institutions to use municipal funding for lending back into their respective footprints, instead of using the liquidity to finance securities collateral.

 

Member profitability may be enhanced as municipal deposit liquidity can be deployed into higher-yielding loans, instead of locking up liquidity in lower-yielding securities collateral.

 

Both REMLOC and MULOC are pathways to accumulate FHLBNY capital stock. Members are required to purchase capital stock equal to 12.5 basis points of the notional value of their letters of credit.

REMLOC Parameters for Collateralization under NJ DOBI’s GUDPA program

 

REMLOCs will be limited to a minimum term of 14 days and a maximum of 30 days.

 

New Jersey members may use a REMLOC as the sole form of collateral or it can be combined with securities collateral. If pledging securities to NJ DOBI in combination with a REMLOC, the securities collateral must be part of a third-party pledge arrangement using the FHLBNY’s safekeeping service.

 

REMLOCs may not be combined with another REMLOC – should additional collateral be necessary, a member, on a case by case basis, may apply to add a regular MULOC to the collateral stack with a maturity not to exceed the term of the existing REMLOC.

For additional information please contact your Relationship Managers at 212-441-6700 or the Member Services Desk at 212-441-6600.

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1Previously, New Jersey members were unable to utilize REMLOCs under the “pooled’ collateralization structure of NJ DOBI’s GUDPA program.

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09/28/2022

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Reintroducing Putable Advances, Fixed-Rate Advances with SOFR Cap and ARC Advances with Cap/Floor

07/05/2022

FHLBNY Affordable Housing Advisory Council Open Nomination Period

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Amendment to the FHLBNY Capital Plan Appendix Effective August 1, 2022

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Wire Transfers Migration to 1Link-IPR

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FHLBNY Announces Enhancements to the Rebate Program for Advances

01/03/2022

2022 Update to MPG & CSM: Member Products Guide and the Correspondent Services Manual

12/03/2021

Updates to the 2022 Fee Schedules

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Important Announcement for Community Lending Programs Users

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An Enhancement to our Callable Adjustable Rate Credit Advance (Callable ARC)

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07/02/2021

FHLBNY CICA Disaster Relief Funding Update

04/14/2021

Enhancements to the Refundable Municipal Letter of Credit for Members Participating in the New Jersey Department of Banking and Insurance GUDPA Program

03/01/2021

Notice of FHLB Members Selected For Community Review (Effective March 1, 2021)

02/10/2021

FHLBNY Capital Stock Purchase Requirement for Letters of Credit (Effective March 1, 2021)

02/10/2021

2021 Update to MPG & CSM: Member Products Guide and the Correspondent Services Manual

12/03/2020

2020 Update to MPG & CSM: Member Products Guide and the Correspondent Services Manual

09/02/2020

Amendments to the FHLBNY Capital Plan (Effective October 2, 2020)

07/30/2020

FHLBNY CICA Disaster Relief Funding: Eligibility Expansion

05/15/2020

Update to the Member Products Guide

06/01/2020

Enhancements to the Refundable MULOC Product

04/23/2020

FHFA Provides Guidance on PPP Loans

01/03/2020

1Link® Migration: Phase I - Interim Portal Roll-out

12/31/2019

2019 Update to MPG & CSM: Member Products Guide and the Correspondent Services Manual (for Jan 2020)

12/17/2019

1Link® Migration: Phase I – Interim Access Portal

11/06/2019

Announcing the Callable Adjustable Rate Credit Advance Pilot Program

09/27/2019

FHLBank System Regulator Provides LIBOR Transition Guidance

06/04/2019

SOFR ARC: FHLBNY is pleased to announce the expansion of the SOFR-Linked ARC Advance Program

03/26/2019

Notice of Federal Home Loan Bank Members Selected For Community Review (March 26, 2019)

01/31/2019

Introducing the Homebuyer Dream Program: A New First-Time Homeowner Grant Program

01/24/2019

2019 Update to MPG & CSM: Member Products Guide and the Correspondent Services Manual

01/04/2019

Announcement of Fannie Mae and Freddie Mac Uniform Mortgage-Backed Security (UMBS)

11/28/2018

Updates to the 2019 Fee Schedules: In our continued effort to provide excellent service to our Members and maintain our focus on the core business of providing liquidity we are pleased to announce further streamlining of ancillary fees.

11/19/2018

The SOFR-Linked Adjustable Rate Credit Advance: The Federal Home Loan Bank of New York is pleased to announce the launch of the Secured Overnight Financing Rate (SOFR)-Linked Adjustable Rate Credit (ARC) Advance.

10/10/2018

Nominations for AHAC: The Federal Home Loan Bank of New York (FHLBNY) is now accepting nominations for the FHLBNY’s Affordable Housing Advisory Council.

10/09/2018

A New Housing Program: A new first-time homeowner grant program is coming in mid-2019.

07/27/2018

D&I Status Report Highlights: In 2017, the FHLBNY made significant achievements in diversity and inclusion. These achievements are captured in our 2017 Diversity & Inclusion Status Report.

05/07/2018

AHP Proposed Rule: The FHFA has issued a Proposed Rule that calls for a number of changes to the AHP. We believe that many of these proposed changes will present significant challenges to our members, housing partners and other community stakeholders, and could impact how affordable housing is funded across our region.

04/20/2018

Member Products Guide & Correspondent Services Manual Update: The FHLBNY has updated its Member Products Guide and the Correspondent Services Manual. The Guide and Manual detail the FHLBNY’s credit, collateral and correspondent services standards and can assist members in finding helpful information on the FHLBNY's Business Lines.

04/05/2018

Affordable Housing Program 2018: The Federal Home Loan Bank of New York is pleased to announce that approximately $45 million in housing grants will be available for the Affordable Housing Program 2018 Competitive Round.

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