Council of Federal Home Loan Banks Hails FHFA Report Highlighting Impact Delivered by Federal Home Loan Banks
WASHINGTON, Oct. 18, 2024 (GLOBE NEWSWIRE) -- The Federal Home Loan Bank System (FHLBank System) today hailed a report published by the Federal Housing Finance Agency (FHFA), regulator of the FHLBank System, indicating that the FHLBanks contributed a total of more than $581 million in Affordable Housing Program and community development grants in 2023.
FHFA’s 2023 Targeted Mission Activities Report highlights the FHLBanks affordable housing and community development activities last year, demonstrating that the FHLBanks delivered $446.9 million in AHP funds, including $35.2 million in voluntary AHP spending. Additionally, the report indicates the FHLBanks delivered $134.6 million in additional voluntary grant funding for a total of more than $581 million in funding for affordable housing and community development in 2023.
In the press release announcing the report, FHFA Director Sandra Thompson is quoted as saying the FHLBanks “assisted close to 65,000 low- or moderate-income households and supported more than 400 targeted economic development projects in 2023.” She is further quoted saying “I am encouraged to see the Federal Home Loan Banks pursue creative and innovative approaches to addressing local housing needs through the voluntary programs they undertake in addition to meeting their obligations under the Affordable Housing Program.”
Ryan Donovan, president and CEO of the Council of Federal Home Loan Banks, said the report stands as a strong indicator of how dedicated the 11 FHLBanks are to working with their members and within their districts to meet the needs of local communities.
“Over the last two years the FHLBanks have taken tremendous steps to help address the housing supply and affordability issues plaguing the country,” said Donovan. “This report clearly shows the positive impact and responsiveness of the 11 FHLBanks to the needs of their members and the communities they serve. We are grateful to FHFA for publishing the report and we look forward to continuing to work with the agency, financial regulators, and other stakeholders to develop innovative and workable solutions to the nation’s housing finance needs.”
In response to feedback the FHLBanks heard during FHFA’s comprehensive review of the System, the FHLBanks voluntarily agreed in early 2023 to contribute 15 percent of the prior year’s net earnings to affordable housing and community development, a 50 percent increase from the statutorily required 10 percent. Based on 2022 net earnings, the FHLBank System was assessed $355.2 million for AHP in 2023, as noted in FHFA’s report. The $581 million in AHP and voluntary contributions in 2023 represent a total of more than 16 percent, or more than 60% above the statutory minimum.
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.
CONTACT INFORMATION
Council of FHLBanks
Peter E. Garuccio
202-955-0002 ext. 14
pgaruccio@cfhlb.org
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