FHFA will conduct a comprehensive review to ensure FHLBanks remain positioned to meet the needs of today and tomorrow. 

The Federal Housing Finance Agency announced it will conduct a comprehensive review of the Federal Home Loan Bank System beginning this fall. “FHFA plays a vital role in supporting affordable, equitable, and sustainable access to mortgage credit,” said FHFA Director Sandra L. Thompson. “FHFA’s regulated entities function as a reliable source of liquidity and funding for housing finance and community investment. As the Federal Home Loan Banks approach their centennial, FHFA will conduct a comprehensive review to ensure they remain positioned to meet the needs of today and tomorrow.” In a statement, Mortgage Bankers Association President & CEO Robert Broeksmit, CMB, commended FHFA’s actions. “We have long supported the responsible expansion of FHLB membership eligibility to better reflect the diverse providers of single-family and multifamily housing finance throughout the country,” Broeksmit said. “Independent mortgage banks have been the largest provider of single-family mortgages for much of the past decade and now service about half of all home loans.” Broeksmit noted today’s housing finance market is also dominated by the securitization process. As part of the review process, FHFA said it will host two public listening sessions and a series of regional roundtable discussions to consider and evaluate the mission, membership eligibility requirements and operational efficiencies of the FHLBanks. FHFA will hear from stakeholders on the FHLBanks’ role or potential role in addressing housing finance, community and economic development, affordability, and other related issues. 

Source: The Mortgage Bankers Association