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TO: All Insurance Company Members
The Federal Home Loan Bank of Boston is pleased to announce important changes to our
collateral and advance request policies. The first two are in direct response to your requests
to expand borrowing capacity and improve the borrowing process. The third is in response to
a regulatory requirement that we must comply with and our approach to make it as simple as
possible for you to help us comply.
1. Collateral Enhancements - Residential and Commercial Whole Loans
Insurance companies may now pledge residential or commercial whole loans to secure
advances. This will enable you to utilize your balance sheet more efficiently and expand
your borrowing capacity. The process on how to deliver loans and collateral valuations
are covered in the Products and Solutions Guide.
2. Supplemental A Form No Longer Required
Most insurance company members are no longer required to submit the Supplemental A
Form before taking down an advance. This will make it easier to borrow and take
advantage of the Bank's frequent discounted rate specials. Now accessing our liquidity is
one phone call away, 1-800-357-3452 for the Money Desk.
3. New Residential Housing Finance Assets Form
You may be aware that the Bank is required to confirm that your company maintains
adequate residential housing finance assets, including mortgage-backed securities, equal
to or greater than advances that are disbursed to you with more than a five-year term. As
a result, if you will be borrowing with a term of more than five years, our Money Desk
staff will be asking you to complete and submit a new Residential Housing Finance
Assets form before borrowing. The form will ask for your total amount of housing
assets from your last quarterly report and should be simple to complete.
The Bank's Products and Solutions Guide has been updated to reflect these changes. Please
review the guide for additional information and contact Matt Stewart, VP/Relationship
Manager at 617-425-9528 with any questions.
Sincerely,
Lawrence Kwoh
Vice President, Director of Credit