The Federal Housing Finance Agency (FHFA) today announced that the Agency will review all applicable Federal Home Loan Bank (FHLBank) members in 2023 under FHFA’s community support program (CSP) regulation. FHFA is issuing a Federal Register Notice inviting the public to comment on the community support performance of individual members of the FHLBanks.
“The FHLBanks’ member institutions must meet community support standards in order to maintain access to long-term FHLBank advances,” said Director Sandra L. Thompson. “Today’s announcement provides the public with the opportunity to tell us how these financial institutions are meeting the standards in their communities.”
FHFA’s CSP regulation requires applicable FHLBank members to submit a Community Support Statement once every two years that describes the member’s community support activities. FHFA will consider feedback provided during the public comment period during its review of each FHLBank member’s compliance with the CSP regulation.
The regulation requires FHLBank members to demonstrate compliance with two criteria:
(1) the member’s Community Reinvestment Act (CRA) performance, for members subject to the CRA; and
(2) the member’s record of lending to first-time homebuyers.
Members that fail to meet the criteria established by FHFA may be unable to access FHLBank advances with a term to maturity greater than one year. This restriction may also prevent such members from participating in an FHLBank’s Affordable Housing Program or Community Investment Cash Advance program.
To ensure consideration by FHFA, comments must be submitted to FHFA either by email to firstname.lastname@example.org by fax to (202) 777-1209 on or before March 24, 2023.
Federal Register Notice for the Federal Home Loan Bank Community Support Program
Leave A Comment?
You must be logged in to post a comment.