Callable Fixed Rate Advance

A long-term fixed rate program with a feature allowing the borrower to call the advance from the FHLB at predetermined dates:

  • Allows the borrower to originate and hold fixed-rate mortgages without undertaking significant interest rate and prepayment risk
  • Useful in lengthening liabilities to facilitate risk management
  • Effective financing tool for both mortgage pass-throughs and collateralized mortgage obligations (CMOs)
Maturity
3, 5, 7 or 10 years; callable structures available are 3:1 (3 year maturity, callable after 1 year), 5:1, 5:3, 7:1, 7:3, 10:3 and 10:5
Rate
Fixed for entire term to maturity
Accrual Basis
Actual / Actual day basis
Interest is Paid
Monthly
Principal is Paid
At maturity or call date (if call option is exercised)
Principal Prepayment Policy
With 20 calendar days’ notice, prior to initial call date or subsequent 6 month anniversary, prepayable with no prepayment fee; prepayable on other dates, subject to prepayment fee
Submission of Application
A Callable Advance application is required for each borrowing

To learn more about our Advance products, contact Jeff Berryman or Lisa Wishart at 800-828-4191.

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