8-K

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): December 4, 2007

Federal Home Loan Bank of New York
__________________________________________
(Exact name of registrant as specified in its charter)

Federally Chartered Corporation	000-51397	136400946
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)
101 Park Avenue, Floor 5, New York, New York		10178-0599
_________________________________ (Address of principal executive offices)		___________ (Zip Code)

Registrant’s telephone number, including area code: 212-441-6616

Not Applicable
______________________________________________
Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01 Other Events.

Each month, the Chief Executive Officer of the Bank issues a 'Report from the President' (the "Report") to each shareholder. Such Reports may contain information that may be important to security holders. A copy of the Report to shareholders for the month of November 2007 issued on December 4, 2007 appears below.


December 4, 2007


TO: All Stockholders
(Individually Addressed)


SUBJECT: Report for the Month


At the Bank

Advance Demand at $75.3 Billion

Average advances were $75.3 billion at month-end October 2007. This is up $9.8 billion from October 2006 and up $5.3 billion from September. This growth, while impressive, occurred at a slower pace than we experienced in August and September of this year during the peak of the liquidity shortage that affected the U.S. lending system.

We are proud to continue to operate as designed 75 years ago – to provide our members with reliable, low-cost liquidity while maintaining a rock-solid bottom line. The performance of the Federal Home Loan Bank of New York reflects sustained advance demand and measured returns on the highest quality, real estate-supported investments. The FHLBNY continues to meet its mission by providing liquidity for housing and community development in all market cycles – even the choppiest.

As recently reported in the press, Countrywide Financial Corporation turned to the Atlanta Home Loan Bank during this summer’s liquidity crisis. In response, U.S. Senator Charles Schumer called on the Federal Housing Finance Board (the Federal regulator of the 12 FHLBanks) to look into the collateral Countrywide used to secure the recent advances from the Atlanta Home Loan Bank. The FHFB and the Atlanta Home Loan Bank will no doubt respond to the Senator’s questions. The Finance Board's Office of Supervision closely monitors the credit and collateral practices of all 12 FHLBanks to ensure that the advances business continues to be carried out in a financially safe and sound fashion. The FHFB monitors in particular the Home Loan Banks’ practices with respect to underwriting advances, securing the collateral supporting those advances, and valuing that collateral. The Atlanta Home Loan Bank also issued a letter on November 28 to its members regarding that FHLBank’s lending practices. That letter is available at the Atlanta Bank’s website (www.fhlbatl.com).


On November 30 Chairman Rosenfeld responded directly to Senator Schumer. Enclosed is a copy of the Chairman’s letter.

All Seats Filled on the FHLB Board of Directors for 2008

Four Industry Stockholders Elected
As I reported in a special stockholders mailing on November 5, 2007, the 2007 Board election results are in:

In New York, Joseph R. Ficalora, Chairman, President and Chief Executive Officer, New York Community Bank, Westbury, New York, was re-elected to the Board. Joe has been serving on the Board since January 2005. In addition, John M. Scarchilli, President and Chief Executive Officer of Pioneer Savings Bank, Troy, New York, was re-elected to the Board. John has been serving on the Board since September 2006.

In New Jersey, Ronald E. Hermance, Chairman, President, and Chief Executive Officer of Hudson City Savings Bank, Paramus, New Jersey, was re-elected to the Board. Ron has been serving on the Board since January 2005. In addition, Kevin J. Lynch, Chairman, President, and Chief Executive Officer of Oritani Savings Bank, Washington Township, New Jersey, was re elected to the Board. Kevin has been serving on the Board since January 2005.

Two Public Interest Directors Appointed by the FHFB
And in September, the FHFB reappointed Richard S. Mroz and Anne Evans Estabrook to the Board as Public Interest Directors.

Richard S. Mroz is President of Salmon Ventures, Ltd., and maintains an of-counsel affiliation with the southern New Jersey law firm of Gruccio, Pepper, DeSanto & Ruth. Richard was first appointed by the FHFB in 2002.

Anne Evans Estabrook is owner of Elberon Development Co. in Cranford, New Jersey. Anne was first appointed by the FHFB in 2004.

Each of these directors will serve on the Board for a three-year term commencing on January 1, 2008, and ending December 31, 2010. I congratulate Joe, John, Ron, and Kevin on their re-election and Richard and Anne on their re-appointment to the Board. We will have a strong, veteran team of Directors on the Board for 2008.


Washington Update

As might have caught your attention, before the Joint Economic Committee of Congress on November 8, Federal Reserve Chairman Ben Bernanke floated the idea of allowing Fannie Mae and Freddie Mac to securitize mortgage loans up to $1 million and also to have the Federal government act as the explicit guarantor.
In my opinion, this is a very dangerous proposal that would nationalize the mortgage industry and undermine, if not eliminate, the community bank portfolio lender. However, others do not s hare this opinion. As a matter of fact, I understand that some special interests in Washington are seizing on the million-dollar mortgage proposal and will be working Capitol Hill to make it a reality. It is vital that we point out the sheer folly of this proposal to the policy makers in D.C. – from our Members of Congress to Fed Chairman Bernanke.

To this end, I transmitted a letter on November 30 to Chairman Bernanke (copy enclosed) expressing my absolute opposition to this proposal. Not only does it destroy the lending system that we have in place today, but it does not get to the problem of the two million subprime mortgages that are possibly facing default and are, in fact, the cause of disruptions in the credit and real estate markets. Our policymakers should be focusing on subprime mortgages that have already been originated in order to establish a solution to the current situation.


Your Home Loan Bank team wishes to thank you, our members, for using our products and servi ces. In doing so, you are able to expand the availability of mortgage credit, compete more effectively in your markets, and promote strong communities.


Sincerely,



Alfred A. DelliBovi
President

Enclosure



Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This 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, esti mate, 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.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

99.1 Federal Housing Finance Board's Chairman's Letter to Senator Schumer Dated November 30, 2007.

99.2 FHLB of NY's President's Letter to Federal Reserve Chairman, Ben Bernake Dated November 30, 2007.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Federal Home Loan Bank of New York
December 4, 2007	By:	/s/ Patrick A. Morgan
		Name: Patrick A. Morgan
		Title: Senior Vice President and Chief Financial Officer

Exhibit Index

Exhibit No.	Description
99.1	Federal Housing Finance Board's Chairman's Letter to Senator Schumer Dated November 30, 2007.
99.2	FHLB of NY's President's Letter to Federal Reserve Chairman, Ben Bernake Dated November 30, 2007.

EX-99.1

FEDERAL HOUSING FINANCE BOARD

November 30, 2007

Office of the Chairman
November 30.2007
The Honorable Charles E. Schumer
United States Senate
3 13 Hart Senate Office Building
Washington, DC 205 10

Dear Senator Schumer:

Thank you for your November 26, 2007 letter with respect to the advances made by the Federal Home Loan Bank of Atlanta (Atlanta FHLBank) to Countrywide Bank. I understand and appreciate your concerns. The FHLBank System can only perform its housing finance mission if it maintains the highest standard of safety and soundness.

In your letter you expressed specific concerns about the mortgage lending practices of Countrywide Bank, the credit and collateral practices of the Atlanta FHLBank, and the level of advances from the Atlanta FHLBank to Countrywide Bank, its largest advances customer. It would be inappropriate for me in this letter to discuss specific examination-related information. However, I will discuss broadly the credit and collateral practices of the FHLBanks and the Finance Board’s examination of the FHLBanks’ advances programs. In addition, we would be pleased to meet with your staff to discuss in greater detail our oversight of the 12 FHLBanks or any particular FHLBank, including the Atlanta FHLBank.

The Federal Home Loan Bank Act (Bank Act) requires that all FHLBank advances be collateralized. Each FHLBank has established policies with respect to the underwriting of an advance, the types of collateral the FHLBank will accept, the discount applied to the specific collateral, and how the FHLBank will perfect its security interest.’ All collateral is discounted, that is, the amount of collateral pledged must exceed the amount of the advance. Collateral coverage ratios range from around 103 percent for the highest quality collateral (e.g., U.S. Treasury securities) to more than 200 percent for certain types of non-traditional collateral.

In addition, a member institution must purchase FHLBank stock to capitalize its advances. The strength and flexibility of the FHLBanks stem in part from the FHLBanks’ capital stock purchase requirements, which allow an FHLBank to meet a member’s advance needs while simultaneously augmenting the FHLBank’s capital base. In the case of the Atlanta FHLBank, for example, a member institution must purchase Atlanta FHLBank stock equal to 4.5 percent of the amount of an advance.

The Finance Board conducts annual examinations of each of the 12 FHLBanks. We evaluate each FHLBank against statutory and regulatory requirements, supervisory guidance and standards, and the FHLBank’s adherence to its own policies and procedures. Our examinations evaluate an FHLBank’s credit and collateral policies, review the FHLBank’s adherence to those policies, assess the FHLBank’s internal control processes, and evaluate the adequacy of independent assessments undertaken by the FHLBank’s internal and external auditors. In addition, our examiners will closely monitor the characteristics and valuation of the collateral pledged by .an FHLBank’s largest borrowers, paying particular attention to second lien mortgages and subprime and nontraditional mortgages subject to an interest rate reset. When warranted, we will require the FHLBank to engage an independent third-party to review collateral valuation taking into account the potential effects of interest rate resets on the performance of subprime and nontraditional mortgages and housing price declines on the security afforded by second lien mortgages. We will also continue to communicate with the primary regulator of any member institution that represents a significant concentration of credit.

Our examinations to date suggest that the FHLBanks have met the substantial increase in demand for advances while adhering to credit, collateral, and capital standards that have proven effective over time in maintaining the safety and soundness of their operations. Since the FHLBank System was created in 1932, no FHLBank has incurred a loss on an advance to a member institution. I am confident that our ongoing supervision of the FHLBanks will help to ensure that they remain safe, sound, and a reliable source of funding for their members. Going forward, we will continue to refine further our supervisory activities in response to changing market conditions to ensure that we discharge our duties as effectively as possible.

When conditions in the country’s mortgage markets deteriorated this summer, the Finance Board stepped up its on-going monitoring of the advances activity of the 12 Federal Home Loan Banks. On August 10, we initiated weekly reporting by each of the FHLBanks of their total advances, top advances customers, top week-over-week increase in advances by member, and changes. if any, in credit and collateral practices at the FHLBanks. In the case of some of the System’s largest borrowers, we now obtain daily, weekly, or bi-weekly information regarding the member’s advances and pledged collateral. As of November 14, 2007, the FHLBanks had $835 billion of advances outstanding, an increase of $195 billion since June 30, 2007. In a strained market, the FHLBanks have provided member institutions with liquidity when other outlets were restricted or closed off entirely.

In your letter you also suggested that reckless and predatory lending practices were a leading contributor to the current and pending foreclosure crisis and asked the Finance Board to consider preventing the use of collateral that does not meet the joint financial regulators’ guidance on nontraditional and subprime mortgage products. I share your concerns about the effect of imprudent lending practices on housing and financial markets. More than two years ago, on August 25, 2005, the Finance Board issued guidance intended to prevent the use of predatory loans as collateral for advances. Earlier this year, on April 12, 2007, the Finance Board issued guidance requiring each FHLBank to adopt and implement policies and risk management practices that establish appropriate risk limits for, and appropriate mitigation of, credit exposure on nontraditional and subprime residential mortgage loans. We will continue to review the policies and practices of the FHLBanks to determine whether, in light of any future market developments, further supervisory action by the Finance Board would be warranted.

I look forward to working further with you on the issues raised in your letter. In particular, if you or your staff should wish to arrange a meeting, please contact Daris Meeks at 202-408-2576.

Sincerely,

Ronald A. Rosenfeld
Chairman

November 30, 2007

The Honorable Ben S. Bernanke
Chairman of the Board of Governors
The Federal Reserve System
Twentieth Street and Constitution Avenue, N.W.
Washington, D.C. 20551

Dear Chairman Bernanke:

During your November 8, 2007, appearance before the Joint Economic Committee of the U.S. Congress, you are reported to have floated an idea to allow Fannie Mae and Freddie Mac to securitize mortgage loans up to $1 million and also to have the federal government act as the explicit guarantor.

In my opinion, this is a dangerous and unwise proposal that completely misses solving the problem of the subprime mess.  First and foremost, it does nothing to defuse the ticking time bomb of subprime mortgages with rates that are about to reset and increase the monthly cost of housing for low- and moderate-income American families. The subprime problem is not about the availability of mortgages for people who make more than $245,000 a year and can afford million dollar homes.

Further, a federally guaranteed million dollar mortgage plan would effectively nationalize the mortgage industry and kill the traditional community portfolio lender — the very core of the lending system that remains standing and lending today because of the conservative and prudent practices under which they originate mortgage loans. Why put the people who did not create this mess in the penalty box?

This million dollar mortgage plan is counterproductive and distracts from finding solutions to a very serious problem of crushing burdens that are about to fall upon homeowners who have these toxic subprime loans.

In 1994 Congress adopted the Home Ownership and Equity Protection Act. This Act was passed in order to prohibit unfair, disruptive, and abusive loans. The Federal Reserve was and is charged with the responsibility of administering the Act.  I believe it is very likely that a large percentage of the two million subprime loans that are in trouble today would never have been written if proper regulations had been issued under HOEPA. I strongly encourage the Federal Reserve to act now to adopt adequate regulations under HOEPA to prevent future unfair, deceptive, and abusive subprime mortgage originations on such a massive scale.

I also urge the Federal Reserve to get to first causes and join FDIC Chairman Sheila Bair in her efforts to deal with the “bad apple” mortgages that are spoiling the credit markets, our communities, and the lives of so many individual families. I hope you agree that solutions are needed to be developed and implemented swiftly by the policymakers in Washington, D.C., so that the subprime mortgages, originated primarily in the years of 2005 and 2006, can be modified or recast to halt repossessions and the negative rippling consequences.  

Mr. Chairman, thank you for considering my views. We all have a stake in making sure the dream of homeownership remains real and available to all those who work for it.  

Sincerely,

Alfred A. DelliBovi
President