Press Releases

October 28, 2024

Contact: Brian Finnegan – (212) 441-6877

U.S. Representatives Ritchie Torres (NY-15) And Gregory Meeks (NY-5)
Announce Federal Home Loan Bank of New York
Now Accepts Mortgage Collateral Using Vantagescore 4.0

—Expanding mortgage collateral options for FHLBNY members will provide additional resource to originate more loans for diverse and underserved borrowers— 

New York, NY – United States Representatives Ritchie Torres (NY-15) and Gregory Meeks (NY-5) announced today that members of the Federal Home Loan Bank of New York (“FHLBNY”) can now pledge mortgage collateral using VantageScore 4.0 credit scores, which considers rental payments and other data points that are not included in traditional scoring models – expanding the number of diverse and creditworthy mortgage applicants and creating more opportunities across the region to help narrow the racial homeownership gap.

In August 2024, Reps. Torres and Meeks formally requested that the FHLBNY consider accepting mortgage collateral originated using alternative credit scores such as VantageScore to expand homeownership opportunities across the FHLBNY’s District.  In response, the FHLBNY initiated a review of its ability to incorporate VantageScore 4.0 into its collateral processes, and today’s announcement marks the culmination of this effort to offer this option to its membership of more than 330 local lenders.

“In partnership with Congressman Meeks, I worked with the Federal Home Loan Bank of New York to implement Vantage Score 4.0, which will provide liquidity for mortgages that had originated on the basis of a credit score that includes alternative data like rent payments. The decision by the Federal Home Loan Bank of New York to recognize Vantage Score 4.0 lays a critical foundation for broad base wealth creation in America,” said Congressman Ritchie Torres.  “I have constituents who have reliably paid their rent in full and on time for decades, and yet none of their rental history is taken into account by conventional credit scoring. The inclusion of alternative data like rent payments in credit scoring is a simple, sensible policy change that will revolutionize access to credit for the lowest income families.”

“I remain committed to creating more wealth building opportunities for the people of Southeast Queens, and homeownership is the best route to do so,” said Congressman Gregory W. Meeks. “My family’s own experience is a personal attestation to the importance of home ownership. By allowing for the use of VantageScore 4.0 credit scores, the Federal Home Loan Bank of New York is broadening opportunity and ensuring that people who have been traditionally left out will have the ability to begin their homeownership journeys. Addressing racial homeownership disparities is a key step in bridging the wealth gap and I commend the FHLBNY for taking this important step.”

“The Federal Home Loan Bank of New York is grateful to Representatives Ritchie Torres and Gregory Meeks for their continued efforts to address housing affordability across New York and throughout our District, and for their focus on ensuring that the FHLBNY remains best-positioned to meet the needs of the communities we all serve,” said José R. González, president and CEO of the Federal Home Loan Bank of New York.  “We are excited to incorporate VantageScore 4.0 into our collateral practices, providing another tool for our cooperative to support inclusive housing and community development efforts throughout our region.”

The FHLBNY joins the Federal Home Loan Banks of Chicago and San Francisco in accepting mortgage collateral originated using VantageScore 4.0.  In October 2022, the Federal Housing Finance Agency – the regulator of the Federal Home Loan Bank System – announced its approval of VantageScore 4.0 for Fannie Mae and Freddie Mac.  VantageScore estimates that using the VantageScore 4.0 credit model will result in approximately 33 million more consumers nationwide having access to a credit score that may aid them in obtaining a mortgage.  This includes an estimated 3.1 million consumers within the FHLBNY’s District, which comprises New York, New Jersey, Puerto Rico and the U.S. Virgin Islands.

“The Federal Home Loan Bank of New York’s decision to accept mortgage collateral backed by VantageScore is a significant step forward in expanding access to homeownership for creditworthy individuals, particularly in underserved communities,” said Anthony Hutchinson, SVP of Government and Industry Relations, VantageScore. “By addressing the long-standing disparities in mortgage lending, this initiative supports our shared goal of narrowing the homeownership gap in communities of color while ensuring financial stability and inclusion for all.”

Broad Community Support

Through the first 10 months of 2024, the FHLBNY has made $135 million in affordable housing and community support available through multiple programs:

• $70.8 million in grant funding through its 2024 Affordable Housing Program Round
• $28.9 million in grant funding through its 2024 Homebuyer Dream Program® (“HDP®”) Round
• $10.3 million in grant funding through inaugural HDP Plus Round
• $15 million in interest rate credits through its 2024 0% Development Advance Program
• $5 million in supplemental credits for low-to-moderate income mortgages sold into its Mortgage Asset Program
• $5 million in grant funding through its 2024 Small Business Recovery Grant Program Round

These programs are funded directly by the FHLBNY’s earnings and are incorporated into its strategy, reflecting the FHLBNY’s continuing commitment to strengthening the communities it serves.  The FHLBNY makes its broadest impact through the execution of its foundational liquidity mission, through which it provides its members with a stable source of liquidity to facilitate the extension of credit to consumers, communities, and small businesses across its region.

About the Federal Home Loan Bank of New York
The Federal Home Loan Bank of New York is a Congressionally chartered, wholesale Bank. It is part of the Federal Home Loan Bank System, a national wholesale banking network of 11 regional, stockholder-owned banks. As of September 30, 2024, the FHLBNY serves 338 financial institutions and housing associates in New Jersey, New York, Puerto Rico, and the U.S. Virgin Islands. The mission of the FHLBNY is to provide members with reliable liquidity in support of housing and local community development.

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This report may contain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. These statements may use forward-looking terms, such as “projected,” “expects,” “may,” or their negatives or other variations on these terms. The Bank cautions that, by their nature, forward-looking statements involve risk or uncertainty and that actual results could differ materially from those expressed or implied in these forward-looking statements or could affect the extent to which a particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties including, but not limited to, the Risk Factors set forth in our Annual Reports on Form 10-K and our Quarterly Reports on Form 10-Q filed with the SEC, as well as regulatory and accounting rule adjustments or requirements, changes in interest rates, changes in projected business volumes, changes in prepayment speeds on mortgage assets, the cost of our funding, changes in our membership profile, the withdrawal of one or more large members, competitive pressures, shifts in demand for our products, and general economic conditions. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to revise or update publicly any forward-looking statements for any reason.