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 ?
Dozier added, "The addition of FHLBank Atlanta and the Southeastern region to the nine FHLBanks already enrolled in the MPF Program provides an even greater opportunity for MPF Xtra to play a national role in mortgage finance.
Prior to the new law, the FHLBanks were restricted to guaranteeing tax-exempt bonds only for multifamily housing projects.
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.
By contrast, only 40 percent of their solvent counterparts borrowed from FHLBanks at the end of 1988, financing, in some cases, only 46 percent of total assets.
Since the first AHP funding rounds, the FHLBanks have awarded more than $4.
The Federal Home Loan Bank System's (FHLBank System) traditional approach to providing community and housing finance through 12 regional FHLBanks faces continual challenges due to consolidation in the financial services industry and the emergence of mortgage lenders with nationwide operations.
Congress opened the door for CDFI loan funds to become members of FHLBanks as part of the Housing and Economic Recovery Act of 2008, and final regulations implementing this provision were issued in 2010 by the Federal Housing Finance Agency.
Since the first AHP funding rounds two decades ago, the FHLBanks have awarded more than $4 billion in combined funds for affordable housing projects.
This is an important milestone for FHLBank Atlanta and the FHLBanks, and will allow us to broaden our community and economic development support efforts.
Nationally, the FHLBanks have awarded more than $4 billion in grants, while across its own district of Delaware, Pennsylvania and West Virginia, FHLBank Pittsburgh has committed more than $200 million to the program and created a total of more than 35,000 affordable housing units to date.
The FHLBanks are a government-sponsored enterprise (GSE) created in 1932 to ensure affordable housing for all Americans.
WASHINGTON -- Each of the 12 Federal Home Loan Banks (FHLBanks) today announced it has entered into a Joint Capital Enhancement Agreement with the other 11 FHLBanks.