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The Federal Housing Finance Agency does not have the authority to redefine the mission of the Federal Home Loan Banks, ICBA told American Banker.
Details: In a new article (subscription required), ICBA’s Tim Roy said the FHFA director's authority was clearly defined in the Housing and Economic Recovery Act of 2008 and any change to the FHLBank mission must be approved by Congress.
Request for Input: The FHFA is considering feedback from its recent request for information on the FHLBank mission. In its comment letter last month, ICBA said the agency should not create additional requirements that restrict FHLBank advances to members in good standing and with eligible collateral, which would reduce the availability of mortgage credit and community development funding.
New Reporting Restrictions: After submitting its comments, ICBA issued a national news release on a FHLBank of New York message to its member banks that it plans to impose additional information reporting requirements to align with the FHFA’s more restrictive approach to lending. In that statement, ICBA repeated its call for the FHFA not to disrupt the FHLBank System as an important source of liquidity for community banks.
Previous Comments: Following last fall’s comprehensive FHFA report 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 also offers a high-level summary of the report outlining its views on the agency’s policy recommendations.