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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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 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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
The majority of funding for the Federal Home Loan Banks comes from the issuance of bonds known as consolidated obligations.
Dallas and Chicago are cooperatives owned by member financial institutions in their respective Federal Home Loan Bank Districts.
Despite assurances by the FHLBB, all but one Federal Home Loan bank refused to accept FSLIC notes as collateral for loans to member institutions.
We believe that it is fully appropriate to confine the benefits of thrift status, involving both access to subsidized long-term borrowing from Federal Home Loan Banks and tax benefits, to only those institutions that devote a major part of their assets to promoting homeownership.
Just last year the Federal Home Loan Bank Board, which runs the Federal Savings and Loan Insurance Corporation, closed ten S&Ls, seized another 25 S&Ls to install new boards of directors and managers, and assisted 22 others in merging with healthier institutions.
The Federal Home Loan Bank of Dallas is one of 11 district banks in the FHLBank system created by Congress in 1932.
The Federal Home Loan Bank of Chicago is a USD70.7 billion wholesale bank serving the needs of
'Amid a volatile market and a slowly recovering economy, the Federal Home Loan Bank of New York has continued to perform well through the first nine months of 2015,' said Jose R.
Federal Home Loan Bank of New York said the bank has awarded USD27.1 million in subsidies to fund 35 affordable housing initiatives that will create, rehabilitate or preserve more than 2,500 affordable housing units throughout New Jersey, New York, Connecticut, Maryland and Pennsylvania.
Each year the Federal Home Loan Bank of Chicago allocates 10% of its earnings to affordable housing programs.
22 August 2014 -- US wholesale bank The Federal Home Loan Bank of New York said that its board of directors has approved a dividend for 2Q14 of 4.05% (annualised).
According to the bank, the COFI is computed from the actual interest expense reported for a given month by the Arizona, California, and Nevada savings institutions members of the Federal Home Loan Bank of San Francisco that satisfy the Bank's criteria for inclusion in the COFI.

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