Mortgage Asset Program (MAP®)
Supplemental Credit for Low-to-Moderate Income Mortgages Sold into MAP®
The Federal Home Loan Bank of New York (FHLBNY) is pleased to announce that we have allocated $5 million to help credit enhance low-to-moderate income (LMI)* mortgages sold into the Mortgage Asset Program (MAP®) in 2024. This supplemental credit will support housing opportunities for LMI families by making it more attractive for our members to underwrite these mortgages and sell them into MAP.
Starting in mid-May 2024, the FHLBNY will provide supplemental funding to credit enhance any qualified LMI mortgages sold into MAP in 2024** with a Loss Coverage Ratio (LC)*** greater than 1.50%. The amount needed to “buy down” or credit enhance the mortgage’s LC to 1.50%, up to a maximum of 150 basis points, will be deposited into the Participating Financial Institution’s (PFI’s) Member Performance Account (MPA) on a first-come, first-served basis until the $5 million allocation is exhausted.
For example, if you sold a $250,000 LMI mortgage into MAP with an LC of 2.11%, 61 basis points, or $1,525, would be credited to your MPA. If the same mortgage had an LC of 4.0%, then the maximum credit enhancement of 150 basis points would be credited to your MPA. The supplemental credit for qualified LMI mortgages will be displayed in your monthly Loss Coverage Summary report.
LMI mortgages tend to have a higher LC, and members are required to manage the weighted average LC on their respective Master Commitment to 1.50% or lower. Offering this supplemental funding to help credit enhance LMI mortgages further aligns MAP with our mission, making it more advantageous for PFIs to book and then sell LMI mortgages to the FHLBNY.
Keep in mind, in March 2024, the FHLBNY implemented new tiered pricing based on loan size for fixed 30-year delivery commitments. Since LMI mortgages typically have lower loan balances, you can further take advantage of our more competitive MAP pricing for lower-balance loans.
If you have questions regarding this offering, please call your Relationship Manager at 212-441-6700.
Did you know that you can sell loans in which the borrower used the FHLBNY Homebuyer Dream Program® (HDP®)* grant into MAP? In addition, these loans may qualify for the new supplemental credit enhancement for LMI mortgages. Contact us for more information.
*Loans made through HDP® Plus may be sold into MAP; however, they do not qualify as LMI loans and will not receive supplemental funding.
* “LMI” refers to primary occupancy conventional conforming loans where the qualifying income of the loan is 80% or less than the estimated Area Median Income (AMI).
** LMI mortgages that were previously sold into the program on or after January 1, 2024, will be retroactively credited.
*** Loss Coverage Ratio is currently calculated using the S&P Global Ratings’ LEVELS model.
