August 31, 2022

FHFA: Comprehensive Review of Federal Home Loan Bank System Announced

The review, FHLBank System at 100: Focusing on the Future, will include a series of listening sessions and regional roundtable discussions

The Federal Housing Finance Agency (FHFA) today announced it will conduct a comprehensive review of the Federal Home Loan Bank (FHLBank) System beginning in the fall of 2022.

“FHFA plays a vital role in supporting affordable, equitable, and sustainable access to mortgage credit,” said FHFA Director Sandra L. Thompson. “FHFA’s regulated entities function as a reliable source of liquidity and funding for housing finance and community investment. As the Federal Home Loan Banks approach their centennial, FHFA will conduct a comprehensive review to ensure they remain positioned to meet the needs of today and tomorrow.” 

The FHLBanks have been a critical source of liquidity for their members for the past 90 years, especially during times of market stress, such as the Great Recession and the outset of the COVID-19 pandemic. The FHLBanks also support low-income housing and community development directly by offering a variety of programs to their members, including the Affordable Housing Program, the Community Investment Program, and the Community Investment Cash Advance Program.

As part of the review process, FHFA will host two public listening sessions and a series of regional roundtable discussions to consider and evaluate the mission, membership eligibility requirements, and operational efficiencies of the FHLBanks. FHFA will hear from stakeholders on the FHLBanks’ role or potential role in addressing housing finance, community and economic development, affordability, and other related issues.  

FHFA invites interested parties to speak or attend the kick-off event for FHLBank System at 100: Focusing on the Future, a listening session on Thursday, September 29, 2022. The session will be held in person at the Constitution Center in Washington, DC, with the option to participate virtually.

FHFA is specifically interested in receiving feedback in six key areas:

1. The FHLBanks’ general mission and purpose in a changing marketplace;

2. FHLBank organization, operational efficiency, and effectiveness;

3. FHLBanks’ role in promoting affordable, sustainable, equitable, and resilient housing and community investment;

4. Addressing the unique needs of rural and financially vulnerable communities; 

5. Member products, services, and collateral requirements; and

6. Membership eligibility and requirements.

Register​​​ ​to attend or speak at the September 29 listening session (12:30 – 4:00 PM). Participants will be able to select in-person or virtual attendance. FHFA is also accepting wri​​tten comments through October 21, 2022, via FHFA’s website ​or mailed to: Federal Housing Finance Agency, 400 7th Street, SW, Washington, DC 20024.

​​About the Federal Home Loan Bank System

The Federal Home Loan Bank (FHLBank) System was founded in 1932 by the Federal Home Loan Bank Act​ as a government sponsored enterprise to support mortgage lending and related community investment. It is composed of 11 regional FHLBanks and the System’s fiscal agent, the Office of Finance. Each FHLBank is a separate, government-chartered, member-owned corporation.

This post was originally published here.