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 final rule, which becomes effective 30 days from publication in the Federal Register, also requires FHLBanks
to obtain and review audited financial statements for insurance company applicants when considering them for membership, and clarifies the standards for determining the location of an institution's principal place of business for purposes of identifying the appropriate FHLBank
district for membership.
of Des Moines is one of eleven FHLBanks
that comprise the
Created by the US congress in 1932, the FHLBanks
are a source of funds for local lenders to finance housing, community development, jobs and economic growth.
Further, Weller illustrates the structure of FHLBanks
as unique in three ways:
System has said that it is planning to launch a new USD3bn two-year global bond issuance.
The ACLI comment letter said 101 life insurance company members of the FHLBanks
for which ACLI has data have $220 billion invested in residential mortgage loans, residential mortgage-backed securities and commercial mortgage-backed securities, including multi-family housing.
were created 78 years ago--during an earlier period of major financial upheaval--to provide a steady stream of low-cost capital to the housing market.
While the application varies from bank to bank, the FHLBanks
typically manage their debt issuance as well as a wide array of fixed income investments and complex hedging instruments using the software.
, however, have not experienced the same financial problems as Fannie Mae and Freddie Mac, leading policymakers and regulators to consider what aspects of the FHLBanks
' business model and governance structure make it different from other housing-related GSEs and whether these differences result in an overall lower risk profile.
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.
Diversification risk: Both the FCS's federal land banks of the 1980s and the present-day FHLBanks
are restricted geographically in their lending portfolio, and both prevent member institutions from diversifying risk through multiple membership.