Washington, DC – May 16, 2024 – Ryan Donovan, President and Chief Executive Officer of the Council of Federal Home Loan Banks, the public voice of the Federal Home Loan Bank System (FHLBank System), today released the following statement in response to the publication of the Federal Housing Finance Agency’s Request for Input on the mission of the FHLBanks.
“Today, FHFA issued a request for input on the mission of the FHLBanks. We look forward to working with FHFA to demonstrate how FHLBanks and our members help achieve the mission that Congress has established for us: to provide reliable liquidity to members to support housing finance and community development, provide grant funding to support affordable housing, and to promote financial stability. The FHLBanks have clearly met these mission objectives throughout their history and continue to fulfill them today. The value FHLBank liquidity holds for members through all economic conditions is indisputable and the FHLBank System is one of the largest sources of private funding for affordable housing in the country.”
Additional information:
Each FHLBank is required by law to contribute a minimum of 10% of income to its Affordable Housing Program (AHP). Last year, the 11 FHLBanks voluntarily agreed to contribute a total of 15% of income to affordable housing and community development initiatives on a go forward basis. Each FHLBank is either already making additional voluntary contributions or is in the process of increasing its voluntary contribution levels. The FHLBank System recently reported combined net income of over $6.6 billion for 2023 with a combined AHP assessment of $752 million. Including expected voluntary contributions based on their 2023 financial results, the FHLBanks expect to provide approximately $1 billion in support for affordable housing and community development initiatives in 2024.
About: The FHLBanks are 11 regionally based, wholesale suppliers of lendable funds to financial institutions of all sizes and many types, including community banks, credit unions, commercial and savings banks, insurance companies, and community development financial institutions. The FHLBanks are cooperatively owned by member financial institutions in all 50 states and U.S. territories. The steady supply of lendable funds from FHLBanks helps U.S. lenders invest in local needs including housing, jobs, and economic growth. The Council of FHLBanks represents all 11 FHLBanks.
