FHFA looks to return FHLBank System to mission
The Federal Housing Finance Agency (FHFA) released its report on the Federal Home Loan Bank (FHLBank) system Tuesday. The report is part of the agency’s comprehensive review of the FHLBank system ahead of the system’s centennial in 2032. NAFCU provided comments to the FHFA to help inform its report.
A key recommendation in the report was that FHLBanks should focus on their mission to support the mortgage market and move away from efforts to be lenders of last resort to troubled banks.
“The Federal Home Loan Bank System is a critical component of the nation’s broader housing finance system,” said FHFA Director Sandra Thompson. “FHFA is focused on ensuring that the FHLBank System serves as a stable and reliable source of liquidity in support of its housing finance and community development objectives – and does so in a safe and sound manner.”
The report is organized under four broad themes:
- mission of the FHLBank System;
- stable and reliable source of liquidity;
- housing and community development; and
- FHLBank System operational efficiency, structure, and governance.
The report includes some NAFCU-supported recommendations, including to increase support for “mission-oriented” organizations including Community Development Financial Institutions (CDFIs), and for Congress to amend the FHLBank Act to authorize all CDFI and credit union members with assets below the statutory cap to pledge CFI collateral to secure FHLBank advances.
As a leader in housing finance reform efforts, NAFCU will continue to advocate for credit unions' ability to help provide safe, sustainable, and equitable housing for all communities.
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