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.
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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.
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References in periodicals archive ?
The FHLB mortgage programs allow depository institutions to hold risk-based capital only up to the amount of their actual credit exposure.
Continued strong mortgage growth has implications for the capital adequacy of the FHLBs. Asset growth exceeded FHLB capital growth in eight of the last 10 years, including 2002, and as a consequence, the FHLBs' capital-to-asset ratio declined from 6.92 percent in 1991 to 4.76 percent as of December 31, 2002.
The FHLB provides members access to products and services (primarily Advances, which are a readily available, low-cost source of funds, purchases of certain mortgage loans from members, and issuance of Letters of Credit to members) and a competitive return through quarterly dividends on their capital investment in the FHLB.
To answer this question, I compare the housing-related assets held by FHLB members against those held by nonmember commercial banks as of June 30, 2001.
In addition to the required AHP assessment, the FHLB voluntarily awarded $1.8 million in the first nine months of 2018 through two of its other housing programs.
FHLB Dallas has also extended its gratitude to former board chairman, Jimmy Clayton, who served a member director for over a decade and most recently as chairman.
The program is designed to support households in FHLB Dallas' member communities that have been declared disaster areas by the Federal Emergency Management Agency (FEMA).
Through the PGP, FHLB Dallas member institutions like Veritex Community Bank contribute USD 500 to USD 4,000 to a community based organization (CBO), which FHLB Dallas matches at a 3:1 ratio.
Congresswoman Eddie Bernice Johnson today joined TBK Bank and the Federal Home Loan Bank of Dallas (FHLB Dallas) to award $17,000 in Partnership Grant Program (PGP) funds to 2ndSaturday Community Development Corporation (2SCDC) to offset operational costs associated with its 2S Industries program.
Through this program, FHLB Dallas member institutions contribute $500 up to $4,000 to a community-based organization (CBO), which FHLB Dallas matches at a 3:1 ratio to provide the CBO up to $12,000 in grant money.
The loss of FHLB funding is a modest long-term credit negative for MREITS, but the five-year phase-out for those obtaining funding prior to September 2014 provides existing borrowers with significant time to find replacement funding.
On July 31, the FHLB announced the proposed merger following votes of unanimous approval by both institutions' boards of directors.