FHLB Listening Tour Kicks Off

10/05/22

The Federal Home Loan Bank System is up for a comprehensive review for the first time in its 100 year history. In August FHFA Director Sandra Thompson announced a listening tour to ensure FHLB remains positioned to meet the needs of today and tomorrow. Specifically FHFA is interested in receiving feedback in six key areas: 1. The FHLBanks' general mission and purpose in a changing marketplace; 2. FHLBank organization, operational efficiency, and effectiveness; 3. FHLBanks' role in promoting affordable, sustainable, equitable, and resilient housing and community investment; 4. Addressing the unique needs of rural and financially vulnerable communities; 5. Member products, services, and collateral requirements; and 6. Membership eligibility and requirements.

The OBL has been concerned about this process for the moment it was announced earlier this year. The FHLB system has been an invaluable source of liquidity for our members for the past 90 years, especially during times of market stress, and we are not supportive of any changes to that system aimed at accomplishing short term political goals. The public testimony last week included advocates for FHLB to increase its efforts to address the affordable housing shortage, and allow nonbank mortgage lenders to become members. In 2020 FHFA held a public comment period where the OBL filed comment tour opposition for expanded FHLB membership to uninsured lenders.