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Bank Facts

The Federal Home Loan Bank of Boston is the wholesale bank for housing finance in the six New England states. Its mission is to support the residential-mortgage and community-development lending activities of its member financial institutions.

Products and Services

Use of the Bank's products and services helps members operate profitably and offer their communities a wide range of financial services. Members use their access to the Bank's loans, called advances, to expand their home lending and to better manage the financial risks associated with home-mortgage lending. The Bank's Mortgage Partnership Finance® program offers members a competitive alternative for funding mortgages for home buyers. The Bank also offers its members many noncredit financial services.

The Bank actively promotes members' participation in affordable-housing and community-development lending through Community Development advances and the Affordable Housing Program. The Bank's Community Development advances offer reduced-rate funding, and its Affordable Housing Program awards below-market-rate advances and direct grants. The Bank also provides technical assistance to help members with their community-lending activities.

Regional Membership

Financial institutions throughout New England are the Bank's members and customers. The Bank's members are the primary providers of credit and financial services in New England. Institutions eligible for membership include savings banks, savings and loan associations, cooperative banks, commercial banks, credit unions, and insurance companies that are active in housing finance.

In addition to serving its members, the Bank is authorized to lend for housing-finance purposes to certain nonmember institutions. Currently, the Bank may lend to each of the state housing-finance agencies in New England. Lending to these agencies helps the Bank expand its ability to meet the housing-finance needs of low- to moderate-income households.

New England Owned and Governed

While government-sponsored, the Bank is privately owned. All stock is owned by the Bank's members. Members purchase and hold stock as a percentage of their assets eligible as collateral for advances and as a percentage of their business activity (advances, loan sales, and so on) with the Bank. The stock has a par value of $100 and, subject to the Bank remaining in compliance with its capital requirements, can be redeemed upon five years notice.

The Bank is governed by a board of directors, all New Englanders who are elected by members. Nine come from member financial institutions and the remainder are independent directors who are not affiliated with any member. The Bank is one of 11 regional Federal Home Loan Banks with a total membership of approximately 7,600 community-based lending institutions. The Federal Home Loan Banks are regulated by the Federal Housing Finance Agency in Washington, D.C.

Prudent Management

The Bank's prudent financial management is the cornerstone of all its activities. The Bank's primary source of income is the spread between the interest it pays to borrow funds through the global capital markets and the interest it earns on funds lent to members. The Bank borrows funds on a joint basis with the other regional Federal Home Loan Banks. The Federal Home Loan Banks borrow at favorable rates because of their strong capital position, conservative lending policies, and status as government-sponsored enterprises.

"Mortgage Partnership Finance" and "MPF" are registered trademarks of the Federal Home Loan Bank of Chicago.