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To take advantage of the Federal Home
Loan Bank of Boston's flexible credit, community-development
and mortgage-finance products, a financial institution must
first become a member of the Bank.
Benefits of Membership
Membership in the Federal Home Loan Bank of Boston offers:
- Reliable low-cost credit products
- Innovative asset-purchase programs
- Discounted funding for affordable-housing and economic-development
initiatives
- AAA-rated letters of credit
- AAA-rated deposit products
- High quality correspondent services
- Attractive stock dividends
Eligibility
Only regulated financial institutions — including savings
banks, savings and loan associations, cooperative banks, commercial
banks, credit unions, and insurance companies — headquartered
in Connecticut, Maine, Massachusetts, New Hampshire, Rhode
Island, and Vermont may apply for membership.
To be eligible for membership, a financial institution must
also meet all of the following criteria:
- It is duly organized under federal or state laws.
- It is subject to inspection and regulation under the banking
laws, or similar laws, of any state or federal regulatory
agency.
- It originates or purchases long-term home-mortgage loans.
A long-term home-mortgage loan is defined as a home-mortgage
loan with a maturity of five years or more.
- Its financial condition is such that advances may be safely
made.
- The character of its management and home-financing policy
is consistent with sound and economical home financing.
- For an institution with assets greater than $500 million,
at least 10 percent of its total assets are in residential-mortgage
loans or related assets.
Capital Stock
When an institution's application is approved, it must purchase
capital
stock. The Bank's capital stock carries a fixed par value
of $100 per share and pays a quarterly dividend determined
by the Federal Home Loan Bank of Boston's board of directors.
For more information, contact Paul
Webber, first vice president / member funding services,
at paul.webber@fhlbboston.com or
617-292-9662.
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