FHFA Reviews Federal Home Loan Bank System

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The Federal Housing Finance Agency (FHFA) is conducting 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,” says 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: the FHLBanks’ general mission and purpose in a changing marketplace; FHLBank organization, operational efficiency and effectiveness; FHLBanks’ role in promoting affordable, sustainable, equitable and resilient housing and community investment; addressing the unique needs of rural and financially vulnerable communities; member products, services and collateral requirements; and membership eligibility and requirements.

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