Federal Home Loan Banks Look Forward to Robust Discussion through FHFA ‘Comprehensive Review' of FHLBank System

last updated on Wednesday, August 31, 2022 in Community News

Published by Council of FHLBanks

The review, ‘FHLBank System at 100: Focusing on the Future,’ to kick off with first listening session Sept. 29 in Washington

This summer, the Federal Home Loan Bank (FHLBank) System celebrated its 90th anniversary. The FHLBanks were created by Congress during the Great Depression to ensure available capital for financing of home mortgages. Over time, Congress has made changes to the System reflecting a continuing evolution of the core mission of providing on-demand liquidity, in all economic cycles, to its approximately 6,500 member institutions nationwide.

As the System approaches its centennial, it is appropriate to reflect on the mission and role of the FHLBanks and if that mission could be enhanced to better serve the needs of communities, financial institutions, and markets in the years to come. On Aug. 31, Director Sandra Thompson of the Federal Housing Finance Agency (FHFA), regulator of the FHLBanks, has announced plans to engage stakeholders to reexamine the role and work of the FHLBanks through a series of listening sessions and regional roundtable discussions hosted by FHFA.

During this review, the FHLBanks will emphasize the importance of our:

  1. Cooperative structure and regional nature
  2. Conservative risk management profile
  3. Mission to support affordable housing, mortgage finance and community development

The FHLBanks look forward to robust discussions throughout the FHFA review process and we are grateful for the FHFA’s leadership in examining the role and impact of the FHLBanks. We welcome this discourse and look forward to exploring how the FHLBanks can continue to fulfill our mission to help communities in the years to come. The Council of FHLBanks serves as the voice of the FHLBank System. Incorporated in 1998, the Council represents the positions and views of the FHLBanks and its members to Washington policymakers, regulators, the news media, and the financial services industry.

FHLBanksThe Council Board consists of director and officer representatives of the 11 FHLBanks. The FHLBank System was created by the Federal Home Loan Bank Act of 1932 as a government sponsored enterprise to support mortgage lending and community investment. The System is comprised of 11 regional banks that serve approximately 6,500 members representing America’s banks, credit unions, insurance companies and community development financial institutions (CDFIs). The banks are privately capitalized and owned as cooperatives by these member financial institutions.

  1. Public Policy