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:
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