Products and Solutions Guide - Federal Home Loan Bank of Boston

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Appendix A – Eligible Collateral and Collateral Valuation cont’d.Eligible Collateral and CollateralValuationEligible Collateral Rating2 Term to Maturity ValuationCommerical Mortgage BackedSecurities 1 AA Five years or greater 65 percent of market valueAAA Less than five years 85 percent of market valueAAA Five years or greater 80 percent of market valueAA Less than five years 75 percent of market valueA 3 Less than five years 65 percent of market valueA 3 Five years or greater 50 percent of market value1. CMBS is eligible under the other real estate related collateral category. All collateral pledged under the ORERC category is limited to adiscounted amount up to two times the member’s GAAP Capital (for Insurance Company members that report under the Statutory AccountingPrinciples, SAP Capital will be used).2. The lowest rating by either Moody’s, S&P, or Fitch will be used to consider eligibility.3. CMBS that is rated only A by either Moody’s, S&P, or Fitch will be limited to a discounted amount of 20 percent of your total pledge of CMBScollateral.Note: Insurance company members and non-depository community development financial institutions that execute a specific lien agreementmay only pledge as collateral (i) cash on deposit in a collateral account at the Bank, (ii) securities issued or guaranteed by the U.S. governmentor an agency thereof, including MBS issued or guaranteed by FNMA or the FHLMC and (iii) private label commercial mortgage backedsecurities. In each case, such securities must be delivered to the Bank or a third-party custodian. The eligibility criteria for pledging privatelabel commercial mortgage backed securities are as set forth in this guide. Discounts applied to securities collateral are increased by 20percent. For example, a discount of 10 percent increases to 12 percent.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 53
Appendix A – Eligible Collateral and Collateral Valuation cont’d.Eligible Collateral and CollateralValuationIn addition to the criteria provided in the table above, the following criteria must also be met for CMBS to be deemed eligiblecollateral:• Domestic CMBS deals only with a maximum threshold of 25 percent for any single loan or single borrower in the pool ofcollateral;• Securities have to be publicly registered and publicly traded;• A daily market price must be available from the Bank’s custodian, Citibank, or an approved third-party custodian, andcash flows must be available for ongoing monitoring/modeling for the Bank to accept the CMBS as collateral;• Minimum of 50 loans in the issue;• Only senior tranches;• All loans securing the bond must be secured by a first mortgage (no junior liens);• Maximum weighted average LTV of 80 percent within the deal; and minimum weighted average DSCR of 1.20X.CMBS with the following characteristics will be deemed ineligible to be pledged as collateral:• Single property, single asset type, or single borrower;• Non-public deals (private placement) or no CUSIP for pricing;• CMBS denominated in currency other than U.S. dollars.• Deals secured by land only loans;• Securities sponsored by the member or any of its affiliates;• Subordinate tranches such as mezzanine and junior tranches (AM, AJ, class etc.);• Securities that represent a share of only the interest payments or the principal payments from the underlying loans; and• Any CMBS that has experienced interest payment shortfalls or that allows for the deferment of interest payments if thereis a shortfall in cash flows (Available Funds Class).The Bank will review each CMBS pledged, and reserves the right to reject collateral for any reason.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 54
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IntroductionBuilding Communities -B
Page 6 and 7: Overnight Funding - Daily Cash Mana
Page 8 and 9: Overnight Funding - IDEAL Cash Mana
Page 10 and 11: Fixed-Rate Advances - Classic Advan
Page 12 and 13: Fixed Rate Advances - Community Dev
Page 14 and 15: Fixed-Rate Advances - Forward Start
Page 16 and 17: Fixed-Rate Advances - HLB-Option Pl
Page 18 and 19: Fixed-Rate Advances - Member-Option
Page 20 and 21: Fixed-Rate Advances - The New Engla
Page 22 and 23: Long-Term Variable-Rate Indexed Adv
Page 32 and 33: Advance RestructuringAdvance Restru
Page 34 and 35: Letters of CreditLetters of CreditS
Page 36 and 37: Asset-Purchase ProgramsAsset-Purcha
Page 38 and 39: Underwriting RequirementsUnderwriti
Page 40 and 41: Underwriting Requirements cont’d.
Page 42 and 43: Collateral Requirements cont’d.1
Page 44 and 45: Collateral Requirements cont’d.Us
Page 46 and 47: Collateral Requirements cont’d.Co
Page 48 and 49: Appendix A - Eligible Collateral an
Page 58 and 59: Appendix B - Anti-Predatory Lending
Page 60 and 61: Appendix B - Anti-Predatory Lending
Page 62 and 63: Appendix C - Subprime and Nontradit
Page 64 and 65: Appendix D - Advances Confirmations
Page 66: Bank ContactsBank ContactsCustomer
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Products and Solutions Guide - Federal Home Loan Bank of Boston

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