Mortgage Asset Programsm
The Aggregate Pool Structure
MAP is designed around two Master Commitment (MC) concepts – the “Single” MC and “Aggregate” MC; all members that do not qualify for the Single MC (those that have demonstrated the ability to deliver $50mm or more loans over a two-year period) will be pooled together into the Aggregate MC structure, wherein each member will be allocated a “Sub-MC” amount that is commensurate with their respective historical funding activity over a two year period.
The MAP Aggregate Pool Structure is a unique risk-sharing concept with multiple benefits to participating members.
Benefits of the Simplified Risk-Sharing Model
MAP credit risk sharing structure rewards PFIs for originating high quality, well-performing loans.
At the time of purchase, the FHLBNY will set-aside a standard credit enhancement of 1.5% for every loan funded, to be retained in a Member Performance Account (MPA) for each PFI.
Loans are pooled into Aggregate Master Commitments.
Loan losses over the life of the pool are absorbed in order by borrower’s equity, mortgage insurance (if applicable), MPA, and finally by FHLBNY.
If pooled losses are low, MPA funds are returned to the seller over time, based on a contractual release schedule.