The Council of Federal Home Loan Banks submitted a letter to FHFA in response to the administration’s recent Executive Order on promoting access to mortgage credit.
The letter offers a roadmap to FHFA for implementing the provisions in the Executive Order that pertain to the FHLBanks, and reflects extensive input and consultation with FHLBank members. It emphasizes the FHLBanks’ long-standing role as a reliable source of liquidity for more than 6,300 member institutions, particularly community banks and credit unions that serve as primary mortgage lenders in rural, small-town, and underserved communities. FHLBank liquidity has demonstrably supported significant increases in mortgage and community lending over time, and the letter underscores the readiness of the FHLBanks to do even more in a supportive regulatory environment.
Key recommendations focus on four core areas:
- Modernizing regulations to better align with how members deliver mortgage credit today, including updates to long-term advance structures and mortgage purchase programs
- Targeting liquidity and housing resources toward entry-level homeownership, small builders, and owner-occupied housing
- Enhancing coordination with the Federal Reserve to improve liquidity access and system resilience, particularly in times of market stress
- Streamlining outdated requirements that add cost and complexity without advancing the FHLBanks’ mission
The letter also highlights the need to reduce cumulative regulatory burden and encourages FHFA to use the Executive Order to recalibrate supervisory practices and reaffirm that major policy changes will be implemented through a notice-and-comment period or clearly identified written guidance.
Overall, the letter frames the Executive Order as a meaningful opportunity to expand access to sustainable mortgage credit, empower community-based lenders, and improve the efficiency of the housing finance system. The letter expresses the FHLBanks’ commitment to working closely with FHFA and other regulators to implement these changes and strengthen housing outcomes across the country.
To view the letter, click here:.CFHLB Letter to Pulte re March 2026 EO – 20260410
