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 ?
And I see the Federal Home Loan Bank System as being one of the tools that it uses to make that--and keep that--happening.
The impending legislation dealing with Fannie Mae and Freddie Mac mandates a thorough study of the Federal Home Loan Bank System and its future role in housing finance.
1085) has been reintroduced from last year and calls for voluntary membership in the Federal Home Loan Bank system for all insured depository institutions, changes the required payment to the Resolution Trust Funding Corporation and calls for a specific study of the feasibility of an affiliate membership status for mortgage bankers and state housing finance agencies.
The current Federal Home Loan Bank System, as reorganized under FIRREA (Financial Institutions Reform, Recovery and Enforcement Act), is at a critical turning point; steps must be taken to enhance it:
By providing these financial intuitions with the ability to join the Federal home loan bank system, we help these community institutions keep more local dollars invested in local communities, the Democrat from Cleveland said.
In contrast to present arrangements, most of the membership of the boards will be drawn from outside the industry, including the Chairman and Vice Chairman of the boards, who will be chosen by the new chief of the Federal Home Loan Bank System.
Part of the Federal Home Loan Bank System, a national wholesale banking network of 11 regional, stockholder-owned banks, The Federal Home Loan Bank of New York is a chartered, wholesale bank.
The US Congress created the Federal Home Loan Bank System, which includes 12 Federal Home Loan Banks, in 1932 to promote housing finance, but each Bank is wholly owned by its member institutions.
FHLB San Francisco is part of the Federal Home Loan Bank System established to help finance mortgages for consumers.
Insurance companies engaged in residential housing finance have been eligible for membership in the Federal Home Loan Bank System since 1932.

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