Brookings, March 10, 2023, Forum On The future Of The Federal Home Loan Bank System
Nearly a century ago, Congress created the Federal Home Loan Bank system (FHLBs) to promote home ownership and provide liquidity to thrifts (savings and loans) and insurance companies that primarily provided mortgages at that time. Today’s financial system is radically different. In light of these systemic changes, it is time to reassess the purpose and mission of the FHLBs.
Megan Haberle, senior director of policy at the National Community Reinvestment Coalition, called for greater regulatory clarity on advances, stating: “Not only tracking the advances, [but] attaching stronger strings to them … we want to make sure the advances are attached to that core purpose.”