Products and Solutions Guide - Federal Home Loan Bank of Boston

Appendix A – Eligible Collateral and Collateral Valuation cont’d.Eligible Collateral and CollateralValuationEligible Collateral Valuation CommentsFully disbursed whole firstmortgages on non owner-occupiedone- to four-family residentialpropertyUp to 75 percent of unpaid principalbalanceRequires a specific loan level listing to the Bank; at leastquarterly, or more often as determined by the Bank.Actual collateral valuation for members that list or deliverloans is based on the Bank’s risk analysis.Fully disbursed whole firstmortgages on residential propertyof five or more unitsFully disbursed whole firstmortgages on residential propertyof five or more units insured by theFHAUp to 73 percent of the lower ofmarket value or unpaid principalbalance90 percent of unpaid principal balancewithout a loan level listingRequires review and acceptance by the Bank beforepledging.Actual collateral valuation for members that list or deliverloans is based on the Bank’s risk analysis.Requires a specific loan level listing to the Bank at leastquarterly, or more often as determined by the Bank.Actual collateral valuation for members that list or deliverloans is based on the Bank’s risk analysis.CFI Collateral• Eligible community financial institution collateral (CFI) can only be pledged by members that qualify as a CFI in accordancewith Federal Housing Finance Agency regulations.• A CFI is defined as a member FDIC-insured depository institution with total average assets over the proceeding threeyearperiod of an amount set and adjusted by the FHFA based on changes in the Consumer Price Index.• CFI collateral must be reviewed and accepted by the Bank prior to pledging as eligible collateral. If accepted, as collateral,the member must provide the Bank with a specific loan level listing for accepted loans at least quarterly, and moreoften as determined by the Bank.• CFI collateral must have a readily ascertainable value and the Bank must be able to perfect a security interest in thiscollateral.Eligible Collateral Valuation CommentsSecured small-business, smallagribusiness,and small-farmloans. (Small farm loans are loanssecured primarily by farmland).50 percent of the lower of marketvalue or unpaid principal balanceCFI loans must be within the member’s legal lending limit toone borrower.Appendix AMain Telephone: 617-292-9600 • Customer Service: 1-800-358-9709 • Money Desk: 1-800-357-3452 • Relationship Managers, MPF, and Housing & Community Investment: 1-888-424-3863 51