Changes to Pledging Income Producing Commercial Loan as Collateral

Beginning on April 1, 2025, the Federal Home Loan Bank of New York (FHLBNY) will implement the following changes regarding the pledging of Income Producing (IP) commercial loan collateral:

Members will be required to report the Debt Service Coverage Ratios (DSCRs) for all pledged IP loans originated on or after January 1, 2025. Any loans missing its DSCR will not be included towards your borrowing capacity.

Loans with a DSCR less than 0.8x will be ineligible to pledge. IP loans assessed during collateral reviews that have DSCR’s under 0.8x will be deemed ineligible and removed from your collateral pool.

These changes were made to further strengthen the FHLBNY’s collateral practices. For more information on the FHLBNY collateral requirements, please refer to the Member Products Guide, which can be found in the in the ‘Manuals and Guides’ section of 1Link®.

We value your partnership and remain committed to further strengthening our cooperative. If you have any questions, please contact your Relationship Manager at (212) 441-6700.

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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.