FHFA to Conduct Review of Federal Home Lending System

The Federal Housing Finance Agency (FHFA) will conduct a review of the Federal Home Loan Bank System beginning this fall.

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The Federal Home Lending Banks (FHLBanks) have been an important source of liquidity for their members for the past 90 years, especially during times of market stress. They also support low-income housing and community development by offering various programs to their members, including the Affordable Housing Program, Community Investment Program, and Community Investment Cash Advance Program.

“FHFA plays a critical role in supporting affordable, equitable, and sustainable access to mortgage credit,” said FHFA Director Sandra Thompson. “FHFA regulated entities operate as a trusted 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 capable of meeting the needs of today and tomorrow.

The FHFA will host two public listening sessions and a series of regional roundtables as part of the review process. The listening session, called FHLBank System at 100: Focusing on the Future, will take place September 29 from 12:30 p.m. to 4:00 p.m. at the Constitution Center in Washington, DC, with the option to participate virtually. Interested parties are invited to speak or attend the event.

FHFA seeks feedback in six key areas: the overall mission and purpose of FHLBanks in a changing marketplace; their organization, operational efficiency and effectiveness; their role in promoting affordable, sustainable, equitable and resilient housing and community investments; how they meet the unique needs of rural and financially vulnerable communities; member products, services and warranty requirements; and membership eligibility and requirements.

FHFA is also accepting written comments through October 21 via its website or by mail to: Federal Housing Finance Agency, 400 7th Street, SW, Washington, DC 20024.

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