Reduces funding costs

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  • Andrew Paolillo

    Mortgage Portfolio Optimization

    In addition to selling new production loans through the Mortgage Partnership Finance® (MPF®) Program, selling seasoned loans can be a useful tool to navigate different risks and adjust the composition of both the asset and liability sides of the balance sheet.

  • MPF 35 and Credit Risk Sharing

    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.

  • Case Study: Mortgage Hold vs. Sell Analysis

    This case study examines whether newly originated residential mortgages should be held in portfolio or sold through the Mortgage Partnership Finance® (MPF®) 35 Program, emphasizing that a mortgage’s coupon rate alone does not determine its value. Using a sample $10 million mortgage pool, the analysis found that selling through MPF 35 and redeploying the proceeds generated significantly greater five-year economic value than holding the loans, while also transferring interest rate and prepayment risk.

  • Andrew Paolillo

    Non-Match Funded Strategies for Insurance Companies

    The deep menu of FHLBank Boston advance products affords insurance company members the ability to use funding in both strategic and tactical ways.

  • Tyler Buckeridge

    Securing Public Deposits Without Tying Up the Balance Sheet

    Public deposits can be an important source of relationship funding, but how they are secured can affect liquidity, earnings, and balance sheet flexibility. FHLBank Boston letters of credit offer a way to provide required credit support while preserving more flexibility across the balance sheet.

  • Asset-Liability Management & Funding Strategies for the Current Environment

  • Caroline Casavant

    How it Works: Mortgage Partnership Finance® (MPF®) Program

    The Mortgage Partnership Finance® (MPF®) Program supports FHLBank Boston members in extending housing financing to their communities. MPF allows members to access liquidity, tailor risk, and focus on their competitive advantage: credit risk in their communities.

  • Case Study: Aligning Prepayment Risk Across the Balance Sheet