As expected, the Federal Housing Finance Agency today issued a request for input on Federal Home Loan Bank membership. Specifically, the agency is seeking comments on the eligibility requirements for FHLB membership—including the financial condition requirements—as well as feedback on how any potential changes to these requirements would affect the system’s safety, soundness and overall mission.
Comments on the RFI are due in 120 days and will be used to inform any potential rulemaking FHFA may deem appropriate. The American Bankers Association welcomed the FHFA’s efforts to ensure the safety and soundness of the FHLB system and allow adequate time for the industry to provide feedback. The association is currently reviewing the proposal and will provide a detailed comment letter.
As ABA has noted in previous comments, its principle concern remains protecting the capital investments of its member institutions—who are the owners of the FHLB system—and ensuring that the system remains a reliable funding source for members of all sizes.