-
In an interview, FHFA Director Mel Watt said there needs to be greater clarity to ensure some entities aren't taking improper advantage of Federal Home Loan Bank membership.
February 4 -
Federal Home Loans Banks officials and others want more time to evaluate and comment on a Federal Housing Finance Agency proposal to restrict FHLB membership.
October 6
WASHINGTON — The criticism of a regulatory proposal to tighten Federal Home Loan Bank membership criteria is not abating.
The most recent outcry came from four housing groups that warned lawmakers last week that the proposal by the Federal Housing Finance Agency "would make harmful changes" to the FHLB membership rules.
The proposal, issued in September 2014, would require all FHLB members to meet an asset test on an ongoing basis. But many in the industry have charged that the plan would effectively force captive insurance companies to exit the FHLB system.
"In the wake of the financial crisis and uneven housing market recovery, captive insurance companies represent a new opportunity for private capital to expand homeownership opportunities for credit-worthy borrowers," the four groups — Habitat for Humanity International, Mortgage Bankers Association, Independent Community Bankers of America and National Association of Real Estate Investment Trusts — said in a Sept. 24 letter to Reps. Jeb Hensarling, R-Texas, and Maxine Waters, D-Calif. They are, respectively, the chairman and ranking member of the House Financial Services Committee.
The letter followed a
The industry's warnings about the proposal have clearly resonated with some lawmakers. A