Collateral Management

We accept a variety of securities, loans, and cash as collateral. When borrowing, members must maintain an amount of qualifying collateral that is sufficient to fully secure all FHLBank Boston extensions of credit. Through initial and periodic reviews, our Collateral department ensures that all collateral pledges are eligible and accurate.

Oversight

The collateral verification review process is overseen by an experienced team of professionals who partner with members to ensure accuracy and efficiency. We have created guidelines and instructions to assist with pledging and reporting requirements and to help members maximize borrowing capacity.

Securities Collateral

Pledging Securities

All members are required to deliver securities pledged as collateral to the Bank’s custodian CitiBank or to a Bank-approved third-party custodian.  

  • Members that deliver to the Bank’s custodian (CitiBank) can execute trades using Online Banking.
  • Members that deliver to the Bank-approved third-party custodian must execute trades in accordance with their third-party custodian’s instructions.   

Appendix-A of the Bank’s Products and Solutions Guide provides detail regarding the types and values of securities that a member may pledge as collateral. Additional steps are required for pledging municipal securities as noted below.

Municipal Securities

As noted, municipal securities may also be pledged. Please read the Frequently Asked Questions for more detail and use the following forms when pledging municipal securities:

Loan Collateral

The following forms will help you with the reporting requirements needed when pledging loan collateral.

1-4 Family Loans

Commercial Real Estate (CRE) Loans:

Multifamily Loans (5 or more units)

Home Equity Line of Credit (HELOC)/Home Equity Loans (HEL):

Preparing for Onsite Loan Reviews

Releasing Collateral

For collateral that you would like released, please be sure to review this process, and complete one of the following forms (found in the Forms + Applications section), and remit it to our Collateral department.

  • Collateral Request to Release Pledged Loan(s)
  • Collateral Consent to Release Securities (approved third party custodians only)
  • Consent to Release Cash


eNotes Coming Soon!

In the coming year, eNotes will be eligible as collateral for residential mortgage loans. Contact your relationship manager for future interest or review the preliminary guidelines and requirements.