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Monday is the deadline for community bankers and others to submit comments on the Federal Housing Finance Agency’s request for input on the mission of the Federal Home Loan Bank System.
Details: The agency request for information seeks input from the public on three categories of questions:
Updating the regulatory statement of the FHLBank System’s mission to better reflect its appropriate role in the housing finance system.
Developing metrics and thresholds to evaluate mission achievement.
Identifying how the FHLBanks could incorporate incentives for members with a strong and demonstrable connection to the FHLBank System’s mission.
ICBA Position:
ICBA believes the mission of the FHLBs is clear and does not need to be changed or clarified beyond what was outlined in statute.
The FHLB System has successfully carried out both aspects of its mission—to provide liquidity to members and to provide affordable housing and community development—in a safe and sound manner through all economic cycles
Creating additional requirements that raise the cost or restrict FHLB advances to members in good standing with eligible collateral will only reduce the availability of mortgage credit or community development funding.
Submitting Comments: ICBA is reviewing the proposal, will submit comments before Monday’s deadline, and encourages community bankers to submit comments on the FHFA website.
More: Following the FHFA’s comprehensive report last fall on the FHLBanks, ICBA urged the agency to ensure any new policies affecting the system do not disrupt it as a source of liquidity for community banks. ICBA offers a high-level summary of the report outlining its views on the agency’s policy recommendations.