Federal Home Loan Banks
The Federal Home Loan Banks (FHLBanks) are a system of regional banks from which local lending institutions everywhere in the United States can obtain funds to finance housing, economic development, and community investment. The FHLBanks are cooperatively owned by their member financial institutions, and are part of the Federal Home Loan Bank System, which was created by the Federal Home Loan Bank Act of 1932. The FHLBanks are regulated by the Federal Housing Finance Agency (FHFA).
History of the Federal Home Loan Banks
The Federal Home Loan Bank System was created by the Federal Home Loan Bank Act of 1932, which was signed into law by President Herbert Hoover. The purpose of the FHLBanks was to provide liquidity to local lending institutions, which would in turn provide more funds for housing and economic development. The FHLBanks were originally established as 12 regional banks, and have since grown to 11 regional banks. The FHLBanks are cooperatively owned by their member financial institutions, which include banks, credit unions, insurance companies, and other financial institutions.
The FHLBanks are regulated by the Federal Housing Finance Agency (FHFA), which was established in 2008. The FHFA is responsible for ensuring that the FHLBanks operate in a safe and sound manner, and that they are able to meet their mission of providing liquidity to local lending institutions. The FHFA also sets the interest rates that the FHLBanks charge for their loans.
Table of Comparisons
| FHLBank | Interest Rate | Loan Term |
|---|---|---|
| FHLBank of Atlanta | 2.50% | 1-5 years |
| FHLBank of Boston | 2.75% | 1-5 years |
| FHLBank of Chicago | 2.50% | 1-5 years |
| FHLBank of Dallas | 2.75% | 1-5 years |
| FHLBank of New York | 2.50% | 1-5 years |
Summary
The Federal Home Loan Banks (FHLBanks) are a system of regional banks from which local lending institutions can obtain funds to finance housing, economic development, and community investment. The FHLBanks are cooperatively owned by their member financial institutions, and are part of the Federal Home Loan Bank System, which was created by the Federal Home Loan Bank Act of 1932. The FHLBanks are regulated by the Federal Housing Finance Agency (FHFA). For more information about the FHLBanks, you can visit the FHFA website or the websites of the individual FHLBanks.
See Also
- Federal Home Loan Bank Act of 1932
- Federal Housing Finance Agency (FHFA)
- Mortgage-Backed Securities (MBS)
- Community Reinvestment Act (CRA)
- Housing and Economic Recovery Act (HERA)
- Federal Reserve System
- Federal Deposit Insurance Corporation (FDIC)
- Government National Mortgage Association (GNMA)
- Federal National Mortgage Association (FNMA)
- Federal Home Loan Mortgage Corporation (FHLMC)
