Federal Home Loan Banks

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Federal Home Loan Banks

The institutions that regulate and lend to savings and loan associations. The Federal Home Loan Banks play a role analogous to that played by the Federal Reserve Banks vis-à-vis member commercial banks.

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 Banks (FHLBanks)

The largest source of residential mortgage and community development credit in the United States. This group consists of a regional cooperative of 12 FHLBanks, each with its own president and board of directors. Its primary business consists of FHLBank Advances, which are low-cost loans made to member institutions.This gives those members the liquidity to make mortgage loans.The FHLBanks (www.fhlbanks.com) regenerate their own liquidity by selling debt consisting of consolidated bonds with maturities of one year or more, and consolidated discount notes which mature within 360 days.

References in periodicals archive ?
By providing member institutions with access to advances with maturities varying from overnight to 20 years (see table 3), FHLBanks can stabilize the flow of residential mortgage loans issued by thrifts during periods of deposit outflows.
The primary source of funds for FHLBI, and for the other Federal Home Loan Banks ("FHLBanks"), is the sale of FHLBanks' consolidated obligations in the capital markets, issued through the FHLBanks' Office of Finance.
Moody's Investors Service affirmed the a long-term senior debt and Prime-1 short-term debt ratings of the Federal Home Loan Bank System (FHLBank System) following the announcement that the FHLBanks of Des Moines and Seattle have entered into an exclusivity arrangement regarding a potential merger.
(11) The final leg of the mortgage market stool is the funding that facilitates financial institutions' ability to retain mortgage loans on their balance sheets, such as bank deposits, advances from the Federal Home Loan Banks (FHLBanks), and other wholesale sources.
Among other things, the Housing and Economic Recovery Act permits Federal Home Loan Banks (FHLBanks) to issue letters of credit (LOCs) to guarantee tax-exempt municipal bonds for a wide range of projects through December 31, 2010.
The FHLBank System (FHLBank System or System) is a government-sponsored enterprise (GSE) that consists of 12 Federal Home Loan Banks (FHLBanks) and is cooperatively owned by member financial institutions, typically commercial banks and thrifts.
Each of the 11 FHLBanks administers its own AHP, making the combined Affordable Housing Program one of the largest private sources of grant funds for affordable housing in the United States.
The primary liability for these consolidated obligations rests with FHLBI; however, we are also jointly and severally liable with the other FHLBanks for the payment of the principal and interest on all consolidated obligations of each of the FHLBanks.
The FHLBanks System has said that it is planning to launch a new USD3bn two-year global bond issuance.
These institutions are similar to the Federal Home Loan Banks (FHLBanks) in that each is chartered by the United States Congress to perform the public policy mission of making housing more affordable.
The Federal Home Loan Banks (FHLBanks, or FHLBank System) are 11 US government-sponsored banks that provide reliable liquidity to member financial institutions (not individuals) to support housing finance and community investment.