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.
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.
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.
