Federal Home Loan Bank System

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Federal Home Loan Bank System

A system of 12 American banks whose purpose is to provide low-cost loans for mortgages, businesses, and urban and rural economic development. The FHLB is not publicly traded, but rather is owned by several thousand banks and other financial institutions. These institutions buy stock in the system in order to become eligible for subsidized loans, which they then make to high-risk customers. Established in 1932 during the Great Depression, the FHLB largely succeeded in its original purposes of putting people in affordable homes. However, in the late 2000s, the FHLB began to have cash flow problems due in part to overexposure to the housing bubble and became the largest borrower from the United States government.

Federal Home Loan Bank System (FHLBS)

A government-sponsored enterprise established in 1932 to improve the supply of funds to lenders, including credit unions, thrifts, banks, and insurance companies that finance loans for home mortgages. With an AAA credit rating the system is able to borrow funds at relatively low cost and pass the savings through to borrowers in the housing market.
References in periodicals archive ?
5670) in the House to amend the Internal Revenue Code to allow bonds guaranteed by FHLB to be treated as tax-exempt bonds.
Among the 10 largest MREITS with FHLB advances, repo represented 81.
Currently, the FHLB of Seattle serves 322 community financial institutions members, of which 106 are credit unions.
However, it became clear in December 2007 (and again in March 2008) that the response of the FHLB System was not enough to ease all of the stress in term funding markets.
selling the mortgages to an FHLB in exchange for a one-time cash payment as well as a stream of credit enhancement fees,
Initially, they operated as deposit-replacement facilities, making advances to thrifts and other FHLB member institutions.
He has served on FHLB Dallas' board since May 2008, most recently serving as chairman of the board's Risk Management Committee.
Starting from zero, at the beginning of 1990, commercial bank membership had grown to 5,786(73 percent of all FHLB members) by December 31, 2001.
Rockall went through a rigorous selection process with FHLB Boston as William L.
The grants are offered via a lottery system once a year through FHLB Dallas members.
It will have access to liquidity through FHLB Dallas' line of advances and other credit products.