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Home » Store » News » Boston FHLB Tightens Non-Agency Policies

Boston FHLB Tightens Non-Agency Policies

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The Federal Home Loan Bank of Boston recently increased the haircut it requires member institutions to take on subprime and nontraditional mortgages posted as collateral for FHLBank advances.Lenders classified as “blanket” members that do not provide loan-level data have to take a 28 percent haircut on nontraditional and 40 percent reduction on subprime mortgages, up from 25 percent...
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