FHLBank Atlanta Assisting Florida Local Housing Finance Agencies in - - PowerPoint PPT Presentation
FHLBank Atlanta Assisting Florida Local Housing Finance Agencies in - - PowerPoint PPT Presentation
FHLBank Atlanta Assisting Florida Local Housing Finance Agencies in Converting Challenges into Opportunities Leah Douglass Vice President, Sales and Trading Operations Manager Arthur L. Fleming Senior Vice President, Director of Community
This presentation may include “forward-looking statements,” which include statements with respect to the Bank’s beliefs, plans,
- bjectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and
unknown risks, uncertainties and other factors, many of which may be beyond the Bank’s control, and which may cause the Bank’s actual results, performance or achievements to be materially different from the future results, performance, or achievements expressed or implied by the forward-looking statements. The forward-looking statements may not be realized due to a variety of factors, including, without limitation: legislative and regulatory actions or changes; future economic and market conditions; changes in demand for advances or consolidated
- bligations of the Bank and/or the FHLBank System; changes in interest rates; political, national, and world events; and adverse
developments or events affecting or involving other Federal Home Loan Banks or the FHLBank System in general. Additional factors that might cause the Bank’s results to differ from these forward-looking statements are provided in detail in the Bank’s filings with the Securities and Exchange Commission, which are available at www.sec.gov. The information contained herein is provided for illustrative purposes only and is based on certain assumptions that FHLBank Atlanta believes to be reasonable. Different assumptions, however, may lead to materially different results. Additionally, past performance and experience with respect to similar financial products may not necessarily be indicative of actual results. The information, analysis, and applications contained herein should not be relied upon as a substitute for your own business judgment and independent review. You should consult your own regulatory, tax, business, investment, financial and accounting advisors, and should perform your own suitability analysis, before entering into any transaction
- r structure described herein. Sophisticated financial products are risky and are not appropriate for all persons.
FHLBank Atlanta is not a registered investment advisor and does not advise persons on the advisability of investing in, purchasing, or selling sophisticated financial products, or the means by which any such product may be utilized. Nothing in the information herein should be considered an offer to sell or a solicitation of an offer to buy any securities or derivative
- products. FHLBank Atlanta is not obligated to update or keep current the information or applications contained herein. FHLBank
Atlanta may own or have a position relative to certain securities or other financial instruments discussed in this information or used in this analysis. Neither FHLBank Atlanta nor any of its directors, officers, employees, agents, attorneys, or representatives, shall have any liability for any loss or damage arising out of the use of all or any part of this information.
Disclaimer
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Who We Are
FHLBank System
Over 80 Years of Helping Institutions Grow and Prosper
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FHLBank System
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FHLBank Atlanta
Contributing to Our Shareholders’ Success as their Trusted Advisor
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Total Assets
$132.4 billion
Total Advances
$92.5 billion
First Quarter Dividend
4.87%
Total Membership
922 Institutions
* Data as of March 31, 2016
Core Products and Services
- Advances (Loans)
- Letters of Credit
- Interest-rate risk management tools
- Derivative Intermediation
- Cash management services
- Affordable Housing Program (AHP) and Community Investment
Program (CIP)
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Working with Housing Finance Agencies
Housing Finance Agencies (HFAs) Eligibility as Housing Associates
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Housing Associate of the FHLBanks is defined as…
Housing Finance Authorities - a public agency, authority, or publicly sponsored corporation that serves as an instrumentality of any state
- r political subdivision of any state, and functions as a source of
residential mortgage loan financing in that state
Housing Associate Eligibility Requirements
- Approved by HUD as a “mortgagee” under Title II of the National
Housing Act
- Chartered institution having succession
- Subject to the inspection and supervision of some governmental
agency
- Principal activity in the mortgage field must consist of lending its
- wn funds
- The financial condition is such that advances may be safely made
- The authority to borrow funds, pledge collateral, and deposit funds
with the FHLBank
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FHLBank Atlanta Housing Associates
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Florida Local HFAs
- Housing Finance Authority of Miami-Dade County
- Manatee County Housing Finance Authority
- Orange County Housing Finance Authority
- Brevard County Housing Finance Authority
- Housing Finance Authority of Lee County
- First Housing Development Corporation of FL
- Housing Finance Authority of Pinellas County
- Florida Housing Finance Corporation
- Housing Finance Authority of Palm Beach County
- Housing Finance Authority of Broward County
Value and Benefits of Becoming a Housing Associate
- Access to all liquidity products without purchasing stock
- Short-term warehouse
- Term funding
- Fixed- and variable-rate
- Access to Letters of Credit/AAA-rated bond credit enhancement
product
- Cash management, including safekeeping services
- Interest-rate risk management tools
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FHLBank Atlanta’s HFA Initiative
Objective: Enhanced operations and policies to better serve the needs of our Housing Associates
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Enhanced Operations and Policies for HFAs
2013 – Workshop with State HFA Executive Directors
- Expanded collateral policies to accept loans
- Created new credit rating methodology for HFAs
- Improved discounts applied to securities collateral
- Enhanced staff training and understanding of HFA business, operations, and balance sheet
2014 – Luncheon with State HFA Executive Directors at NCSHFA Conference
- Feedback on credit and collateral; policy enhancements
- New strategies – “Structured Partnerships”
- Revised Bank’s advances and security agreement to facilitate HFA pledges of mortgage loans
2015 – Luncheon with Executive Directors of Florida Local Housing Finance Agencies
- Building new relationships and awareness
- Eligibility requirements clarifications
- Structured Partnership concept
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Affordable Housing Products and Services
FHLBank Atlanta AHP Scale and Impact
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$692.6 Million
competitive funds awarded to create over 109,600 rental and homeownership opportunities for moderate-, low- and very low-income households since 1990. AHP Competitive Leverage Ratio – 1:13
$167 Million
funded through AHP Set-aside products and supporting more than 24,500 units since 1997. AHP Set-aside Purchase Leverage Ratio – 1:20
$7.5 Billion
low-cost CICA advances supporting community economic initiatives and affordable housing development.
*As June 30, 2016
Economic Development Program AHP Competitive Program Community Investment Program AHP Set-aside Program
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Structured Partnerships
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$3 Million $3.8 Million $3 Million $900,000 $1.5 Million $1.8 Million
Structured Partnership
Structured arrangement between the Federal Home Loan Bank of Atlanta (FHLBank Atlanta) and a group of Florida local housing finance agencies (FL HFAs) using a universal agreement
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Funding
FHLBank Atlanta commitment is up to $1 million
$1 Million
FL HFAs maximum commitment is $2 million
$2 Million
FHLBank Atlanta and FL HFAs will commit grant funds on at least a 2:1 ratio, on a transactional basis
2:1 Ratio
Lead HFA Participating Counties Products HFA of Hillsborough County Hillsborough, Brevard, Clay, and Jacksonville
- FHA Loans
- VA Loans
- RD Loans
- Fannie Mae
and Freddie Mac *
HFA of Miami-Dade County Miami-Dade HFA of Pinellas Pasco, Pinellas, and Polk
At least a
*Fannie Mae and Freddie Mac available only in Miami-Dade County
Housing Floridians
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- Generating a pool of new
participating lenders for local HFAs
- Exclusive access to $11,250 to
$22,500 per household in grant funding
- Local HFAs via a single
agreement (Universal MOA)
- Collaborative
- CRA Innovation Strategy
- Positive branding and
awareness
Housing Floridians
Event Sponsorship LOC for Multi- family Bods 4% LIHTC Warehousing financing mortgage loans to facilitate HFA single-family programs Balance Sheet Management Structured Partnerships
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Appendix
HFA - Credit Scoring and Availability (limits)
- Proprietary model assigns ratings from 101 through 104
(101 is the healthiest)
- Based upon increasing probability of default
- Separate models for banks, credit unions, insurance companies,
and HFAs
- HFA Credit Model takes the following into account:
- B/S strength (Asset/Debt Ratio)
- Portfolio performance (% of loans 90 days PD)
- Financial performance (Operating income to operating revenue)
- Variable rate debt (Variable rate debt to program bonds)
- Credit analysts review ratings each quarter
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APPENDIX
HFA - Collateral Requirements
Eligible Collateral
- Treasury securities
- Agency securities issued by FNMA, FHLMC, FHLBank, and
Ginnie Mae
- Municipal securities*
- 1-4 family residential and multifamily loans**
*Must meet specific eligibility requirements ** Must have a credit score of 101 or 102
APPENDIX
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HFA - Collateral Haircuts
Haircuts are applied to daily market values as follows:
Treasury, Agency, and Agency MBS Haircuts:
Maturity 0-5 Maturity 5-10 Maturity 10+ HFA CS 101-102 5% 5% 5% HFA CS 103-104 8% 9% 11%
PLMBS and ABS (2nds) Haircuts:
HFA CS 101-102 12% HFA CS 103-104 30%
CMBS Haircuts:
HFA CS 101-102 12% HFA CS 103-104 30%
*CS – Internal Credit Score on scale of 101-104 with 104 being the lowest/worst
APPENDIX
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Leah Douglass, Vice President, Sales and Trading Operations Manager ldouglass@fhlbatl.com 404.888.8453 Arthur L. Fleming, Senior Vice President, Director of Community Investment Services afleming@fhlbatl.com 404.888.5359 Rob Kovach, Senior Vice President, Chief Credit Officer rkovach@fhlbatl.com 404.888.8461 Jon Parness, Vice President, Associate General Counsel jparness@fhlbatl.com 404.888.5309
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