October 31, 2008

Credit Products
The Bank offers short-, medium-, and long-term loans (called “advances”) with features that include fixed or variable rates and several choices for payment of principal and interest. Some advances contain embedded options, interest-rate caps, or interest-rate floors. The Bank offers discounted advances for funding eligible affordable-housing and community-development initiatives. In addition to advances, the Bank also offers non-cash credit products such as letters of credit and forward commitments to borrow advances.

The Bank's credit products may present significant interest-rate and other risks to members. Members should ensure that they fully understand these risks and are able to manage them prior to obtaining products from the Bank.

For more information about the Bank's credit products, call your relationship manager, at 1-888-595-8733, or contact the Money Desk, at moneydesk@fhlbboston.com or 1-800-357-3452.

Asset-Purchase Programs
The Bank's Mortgage Partnership Finance®(MPF®) program is an attractive alternative to the traditional secondary market. Through MPF, the Bank purchases eligible mortgages from participating members. Members originate and service the loans and are paid fees in return for retaining much of the credit risk associated with the loans. The Bank manages the interest-rate, liquidity, and prepayment risks, as well as a portion of the credit risk. While MPF is currently the only asset-purchase program offered by the Bank, others may be available in the future.

For more information about the Bank's asset-purchase programs, contact the MPF staff, at mpf@fhlbboston.com or 1-888-675-0556, or call your relationship manager, at 1-888-595-8733.

Correspondent Services
The Bank offers a number of correspondent services for cash management and investment. Cash-management services include IDEAL Way demand deposit accounts, IDEAL Way lines of credit, zero-balance disbursement accounts, custodial mortgage accounts, automated reconcilement services, funds transfer services, and fed settlement services. The Bank's investment services include several short- and long-term deposit programs and safekeeping and trading services.

For more information about the Bank's correspondent services, call your relationship manager, at 1-888-595-8733, or contact the Money Desk, at moneydesk@fhlbboston.com or 1-800-357-3452.

"Mortgage Partnership Finance" and "MPF" are registered trademarks of the Federal Home Loan Bank of Chicago.