Update to Forward Starting Advances

The Federal Home Loan Bank of New York (FHLBNY) is changing the parameters of Forward Starting Advances effective May 1, 2024. Forward Starting Advances give members the flexibility to book funding with a future settlement date to match advance funding with future liquidity needs.

Forward Starting Advances will now have a maximum settlement date of 3 months*
(reduced from 1 year). In addition, any settlement date beyond a week will:

be subject to credit review and approval, and
require 5% collateralization of the principal value of the advance.

Upon settlement of the advance, the member will be required to fully collateralize the advance.

These changes will help your Federal Home Loan Bank remain a stable, reliable, and trusted partner by reducing the FHLBNY’s risk exposure over the term of the forward start period while still providing members flexibility to meet borrowing needs.

In accordance with these changes, the FHLBNY’s Member Products Guide will be updated and can be found on 1Link® in the ‘Manuals and Guides’ section.

*Members with credit restrictions may only utilize Forward Starting Advances with a settlement date of 1-week and under

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Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This report may contain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. These statements may use forward-looking terms, such as “projected,” “expects,” “may,” or their negatives or other variations on these terms. The Bank cautions that, by their nature, forward-looking statements involve risk or uncertainty and that actual results could differ materially from those expressed or implied in these forward-looking statements or could affect the extent to which a particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties including, but not limited to, the Risk Factors set forth in our Annual Reports on Form 10-K and our Quarterly Reports on Form 10-Q filed with the SEC, as well as regulatory and accounting rule adjustments or requirements, changes in interest rates, changes in projected business volumes, changes in prepayment speeds on mortgage assets, the cost of our funding, changes in our membership profile, the withdrawal of one or more large members, competitive pressures, shifts in demand for our products, and general economic conditions. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to revise or update publicly any forward-looking statements for any reason.