FHFA to launch probe of Federal Home Loan Banks this fall
The Federal Housing Financing Agency will conduct a comprehensive review of the Federal Home Loan Bank System this fall.
FHFA Director Sandra L. Thompson announced the forthcoming probe in a statement issued Wednesday afternoon. She said the agency would examine the 11 Home Loan banks on several fronts to ensure they remain positioned to meet the needs of today and tomorrow.
Sandra Thompson, director of the Federal Housing Finance Agency, said Wednesday that the agency is conducting a review of the Federal Home Loan Bank system in order to ensure they remain positioned to meet the needs of today and tomorrow.
Bloomberg News
The announcement comes amid growing calls for greater oversight of the Home Loan banks, which have seen their core businesses change considerably since their establishment 90 years ago.
The Home Loan banks were created during the Great Depression to provide liquidity for home financing and community development, and serve as a lender of last resort. In recent years, they have become the subject of increasing scrutiny as demand for advances the mechanisms through which the Home Loan banks support their member institutions have fallen precipitously since early 2020.
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