The MPF Program uses a layered credit enhancement structure in which losses are absorbed sequentially by borrower equity, private mortgage insurance (if applicable), the First Loss Account, the PFI’s Credit Enhancement Obligation, and finally FHLBank Boston.
Funding Spread Lending Opportunities for Insurance Companies
As asset spreads become volatile and widen, insurance company members have several funding solutions to take advantage of spread lending opportunities. Whether the target assets are fixed-rate or floating-rate, with prepayable principal or in bullet structures, FHLBank Boston advances enable members to mitigate interest-rate risk and align asset and liability cash flows.
The Callable SOFR-Indexed Floater combines the benefits of long-term funding with adjustable-rate exposure, while also providing the flexibility to prepay without a fee at certain intervals.
Our Annual Report illustrates how the Bank’s steady financial performance and member partnerships are advancing New England’s economy and enabling us to fulfill our mission each day.