May 16, 2024

FHFA: Input Requested on FHLBank System Mission

Today, the Federal Housing Finance Agency (FHFA) issued a Request for Input (RFI) on the mission of the Federal Home Loan Bank (FHLBank) System as the Agency considers next steps for related rulemakings.

The RFI provides an opportunity for the public to provide feedback on a core recommendation of FHFA’s Federal Home Loan Bank System at 100: Focusing on the Future report. Recognizing the importance of government-sponsored enterprises serving a clear public purpose, the report recommends clarifying the mission of the FHLBank System and updating how the Agency evaluates the FHLBanks’ achievement of that mission.

“The mission of the FHLBanks to provide liquidity and support housing and community development should be clearly articulated and reflect their role in the housing finance system,” said Director Sandra L. Thompson. “FHFA welcomes the public’s input on how best to achieve this clarity of purpose for the FHLBank System in future rulemakings.”

As FHFA considers potential rulemakings to strengthen the connection of the FHLBanks to their public purposes, the Agency is requesting input from the public on three categories of questions:

  1. Updating the regulatory statement of the FHLBank System’s mission to better reflect its appropriate role in the housing finance system;
  2. Developing metrics and thresholds to evaluate mission achievement; and
  3. Identifying how the FHLBanks could incorporate incentives for members with a strong and demonstrable connection to the FHLBank System’s mission.

​ FHFA invites interested parties to provide written input, feedback, and information on all aspects of this RFI by July 15, ​2024. Comments may be submitted via FHFA’s website (select “FHLBank Mission” from the menu) or mailed to the Federal Housing Finance Agency, Division of Bank Regulation, 400 7th Street, S.W., Washington, DC 20219.​

This post was originally published here.