Published: July 2024

Advocates support review of Federal Home Loan Banks mission

Coalition: Coalition for Federal Home Loan Reform (CFR)

The Coalition for Federal Home Loan Bank Reform and dozens of other advocacy organizations submitted a letter to the Federal Housing Finance Authority urging reforms to the Federal Home Loans Banks mission statement.

In response to a Request for Input regarding a review of the mission statement of Federal Home Loan Banks (FHLBanks), the Coalition for Federal Home Loan Bank Reform (CFR) and dozens of other advocacy organizations, including Consumer Action, submitted a letter to the Federal Housing Finance Authority. FHLBanks are 11 U.S. government-sponsored banks that provide liquidity to financial institutions to support housing finance and community investment. In the letter, CFR and signers urged reforms that would help the FHLBanks system fully leverage all its activities, lending and investments toward fair and affordable housing and community development. Advocates see the current system as focused less on meaningful housing improvements and more on member profits. The four targets for reform presented in the letter are: clarification of the mission of the FHLBanks as providing liquidity for fair and affordable housing and community development; revision of the activities listed in the Core Mission Achievement regulation to focus on those that aid lower-income families, rural areas, Native American communities, and communities of color; review of how the FHLBanks invest and leverage their capital; and development of membership incentive programs that reward members who are mission-consistent.

Lead Organization

Coalition for Federal Home Loan Bank Reform (CFR)

More Information

Read the letter here.

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