Homeowner Affordability and Stability Plan

On February 18, 2009, President Obama announced a comprehensive plan to help responsible homeowners avoid foreclosure by providing affordable and sustainable mortgage loans. The Homeowner Affordability and Stability Plan, a $75 billion dollar federal program, provides for a sweeping loan modification program targeted at borrowers who are at risk of foreclosure because their incomes are not sufficient to make their mortgage payments. It also includes refinancing opportunities for borrowers who are current on their mortgage payments but have been unable to refinance because their homes have decreased in value.

Loan Modification

Under the Homeowner Stability Initiative, Treasury will spend up to $50 billion dollars to make mortgage payments affordable and sustainable for middle-income American families that are at risk of foreclosure. Borrowers who are delinquent on the mortgage for their primary residence and borrowers who, due to a loss of income or increase in expenses, are struggling to keep their payments current may be eligible for a loan modification.

Treasury, the Department of Housing and Urban Development (HUD) and other federal agencies are working with lenders and nonprofit housing counselors to put all the systems in place to implement this massive program by March 4, 2009. In the meantime, borrowers can get additional information atwww.financialstability.gov. This site includes questions and answers that will help homeowners determine if they are eligible for modification assistance.

There is no fee to borrowers for assistance through the Homeowner Stability Initiative. Consumers should be wary of any organization that attempts to charge a fee for housing counseling or modification of a delinquent loan, especially if it asks for money in advance.

Borrowers who are delinquent and have not yet been in contact with their lender should call their servicer or a HUD-approved housing counselor immediately, whether or not they believe they are eligible for the Homeowner Stability Initiative. The Financial Stability website provides links to HUD-approved housing counselors and lists phone numbers for most lenders.

Refinancing

Under the Homeowner Affordability and Stability Plan, borrowers who are current on their mortgage but have been unable to refinance because their house has decreased in value may now have the opportunity to refinance into a 30-year, fixed-rate loan. Through the program, Fannie Mae and Freddie Mac will allow the refinancing of mortgage loans that they hold in their portfolios or that they guarantee in their own mortgage-backed securities. Lenders will be able to begin accepting refinancing applications on March 4, 2009. To determine if your loan is owned or has been securitized by Fannie Mae or Freddie Mac and is eligible for refinancing, you should contact your mortgage lender after March 4.

In the meantime, borrowers can get additional information at www.financialstability.gov. This site includes questions and answers that will help homeowners determine if they are eligible for refinancing assistance.

Borrowers should be wary of any organization that attempts to charge a fee for housing counseling or "assistance" in finding a lender that will refinance mortgages under the Homeowner Affordability and Stability Plan, especially if it asks for money in advance.

Federal Home Loan Bank of New York Announces Fourth Quarter and Full-Year 2011 Operating Highlights

NEW YORK, Feb. 13, 2012 /PRNewswire via COMTEX/ -- The Federal Home Loan Bank of New York (the "Bank") today released its unaudited financial highlights for the quarter and year ended December 31, 2011.

In the fourth quarter of 2011, the Bank earned $84.5 million in net income, a decrease of $1.9 million, or 2.2 percent, from net income of $86.4 million for the fourth quarter of 2010. The Bank's net income for 2011 was $244.5 million, a decrease of $31.0 million, or 11.2 percent, from net income of $275.5 million for 2010.

"The Federal Home Loan Bank of New York had a solid 2011 as the Bank and our members continued to navigate through challenging markets to lay the groundwork for our nation's economic recovery," said Alfred A. DelliBovi, President and CEO of the Bank. "Amid prolonged volatility in both the global and domestic economies, the Home Loan Bank has remained a reliable and accessible source of funding for our members and the communities they serve. We have continued to provide a reasonable dividend to our members and fulfill the mission of our cooperative. Our region's strong community banks continue to make the responsible and suitable loans that will build our nation's recovery from the local level, and we are proud to partner with them to strengthen cities and towns across New Jersey, New York, Puerto Rico and the U.S. Virgin Islands."

As of December 31, 2011, total assets were $97.7 billion, a decrease of $2.5 billion, or 2.5 percent, from total assets of $100.2 billion as of December 31, 2010. The decrease in total assets was the result of a decline in advances during the period. As of December 31, 2011, advances were $70.9 billion, a decrease of $10.3 billion, or 12.7 percent, from $81.2 billion as of December 31, 2010. This decrease in member demand for advances was driven by economic factors such as continued growth in members' deposit bases and the availability of other liquidity options.

As of December 31, 2011, total capital was $5.0 billion, a decrease of $98 million, or 1.9 percent, from $5.1 billion as of December 31, 2010. The Bank's unrestricted retained earnings increased during 2011 by $10 million to $722 million as of December 31, 2011. At December 31, 2011, the Bank met its regulatory capital-to-assets ratios and liquidity requirements.

The Bank set aside $27.4 million for the Affordable Housing Program for the year ended December 31, 2011, a decrease of $3.7 million, or 11.6 percent, from $31.1 million for the year ended December 31, 2010.

The Bank will publish its 2011 audited financial results in its Form 10-K filing with the Securities and Exchange Commission, which is expected to be filed by March 30, 2012.

About the Federal Home Loan Bank of New YorkThe Federal Home Loan Bank of New York is a Congressionally chartered, wholesale Bank. It is part of the Federal Home Loan Bank System, a national wholesale banking network of 12 regional, stockholder-owned banks. The FHLB of New York currently serves over 330 financial institutions in New Jersey, New York, Puerto Rico, and the U.S. Virgin Islands. The mission of the Federal Home Loan Banks is to support the efforts of local members to help provide financing for America's homebuyers.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995This report contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. These statements may use forward-looking terms, such as "projected," "expects," "may," or their negatives or other variations on these terms. The Bank cautions that, by their nature, forward-looking statements involve risk or uncertainty and that actual results could differ materially from those expressed or implied in these forward-looking statements or could affect the extent to which a particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties including, but not limited to, regulatory and accounting rule adjustments or requirements, changes in interest rates, changes in projected business volumes, changes in prepayment speeds on mortgage assets, the cost of our funding, changes in our membership profile, the withdrawal of one or more large members, competitive pressures, shifts in demand for our products, and general economic conditions. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

What You Should Know About Policy Loans

Life insurance is a uniquely flexible financial product that provides valuable protection for your loved ones. Certainly, the main purpose of life insurance is the death benefit, which may supply your family with much-needed cash upon your death. This can go a long way toward helping them meet the expenses that may arise, including living expenses, final costs or taxes. In addition, permanent life insurance also has many "living benefits" — benefits that you can take advantage of during your lifetime. One major "living benefit" is the accumulation of cash value that can be borrowed against in times of need, such as to help pay for a child's education or to help fund retirement. Here's what you need to know about taking loans against your permanent life insurance policy.

How Policy Loans Work
Permanent life insurance accumulates cash value tax-deferred, and you may borrow up to the amount of the accumulated cash value through one or more loans. A loan against your life insurance policy accrues interest and reduces the death benefit.

Potential Pitfalls You'll Want to Avoid
When you take out a loan against your life insurance policy, it's important to understand the consequences. If you don't repay your loan?or at least repay the interest on the loan when due?it can have an adverse effect on your policy. Please note that:

• Loans against a policy must be paid back. If you die while a loan is outstanding, the amount of the loan, plus any unpaid interest, will be deducted from the death benefit. That means your beneficiaries may not receive the full legacy you intended them to have, and which they might need.
• Interest is charged on a policy loan and will be charged for as long as the loan is unpaid. If the annual loan interest is not paid when due, the loan itself will increase annually by the amount of the unpaid interest.
• If the policy loan is still outstanding when you surrender your policy or it lapses, the amount of the loan (including interest due) will be considered taxable income to the extent that there is gain in the policy.
• If you use Whole Life dividends (which are not guaranteed) that have been set aside to pay premiums in a "POP"("Premium Offset") arrangement to repay a loan or interest on a loan, your "POP"arrangement can be compromised. There may not be enough dividends to continue to cover the premium and repay the loan or interest. If this happens, you may have to pay additional out-of-pocket premiums that you hadn't planned for.

What You Can Do
Before taking out a policy loan, we encourage you to contact New York Life to get more information about the financial impact a policy loan could have on your policy. If you have loans out on your policy, ask to see a policy illustration showing the current impact of your loan on your policy's death benefit. Also, discuss with your representative the amount of taxable income, should the policy lapse or be surrendered.

Another good rule of thumb is to at least consider paying the annual interest due on your policy loan each year to prevent your loan from increasing. And, if and when you decide to repay the loan, your representative can help you plan a disciplined loan repayment program.

Is Loan Protection Insurance Right For You?

Loan protection insurance or payment protection insurance (PPI) is designed to help policyholders by providing financial support in time of need. Whether the need is due to disability or unemployment, this insurance can help protect monthly loan payments and protect the insured from default. The loan protection policy has different terms depending on where it is offered. In Britain, it could be referred to as accident sickness insurance, unemployment insurance, redundancy insurance or premium protection insurance. These all provide very similar coverage. In the U.S. it is oftentimes referred to as payment protection insurance (PPI). The U.S. offers several forms of this insurance in conjunction with mortgages, personal or car loans. Read on to find out how these loans work and if they could be right for you.

Our life in Debt

The goal of this blog is to share information about Insurance, Loans, and Mortgages. Armed with the latest information and real life stories, hopefully we will be better equipped to cope with "Our Life in Debt"