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Leagues’ Bulletin: FHLB Analysis on Home Loan Bank System

The Federal Housing Finance Agency (FHFA) has issued its Federal Home Loan Banks at 100: Focusing on the Future report, which contains a wide range of recommendations with the intention of helping to strengthen the FHLBank System for the future.

In conjunction, the California and Nevada Credit Union Leagues has published a regulatory compliance bulletin on the FHFA’s report — located here (click). Credit union leaders are encouraged to read it, as it summarizes key takeaways of the FHFA’s report and its legislative and regulatory recommendations.

While the Federal Home Loan Bank of San Francisco recently received this report, it’s important to know that it’s business as usual for the FHLBank System — and FHLBank San Francisco will continue to meet credit unions’ needs just as reliably as it has for more than 90 years.

Over the coming days, FHLB San Francisco and the greater FHLBank System, along with other stakeholders (including members and affordable housing and community development partners), will be reviewing and assessing the implications of all of the report’s recommendations. FHLB San Francisco encourages credit union leaders to read the report.

It’s important to note that this report represents only the beginning of the conversation about how the FHLB System can best be positioned to meet financial institutions’ needs, as well as the needs of the communities it collectively serves going into the future. This is the starting point for what will be a lengthy process to fully develop the supervisory, regulatory, or legislative changes that might be implemented.

Together, financial institution members and the FHLB System have the opportunity to shape the ultimate outcome of the FHFA’s review. As a cooperative, the FHLB System’s story is your story — and with your active engagement, the FHLB System can make sure policymakers, regulators, and the public knows how the system matters to your credit union and your communities.

It’s especially important that your credit union’s voice is heard in the halls of Congress. Additionally, FHLB San Francisco invites your credit union to help in activating trade associations and peers in the financial services industry to ensure any changes to membership, structure, or operations are aimed at enhancing the value and importance of the FHLBanks to FHLB members and the communities they serve.

Along with FHLB System’s vital role as a reliable source of liquidity for its members in all economic cycles, funding and promoting a wide range of affordable housing, homeownership, and community development programs is at the core of its mission. Since 1990, our bank has contributed approximately $1.14 billion in Affordable Housing Program grants, including $32.9 million in 2023 alone.

In addition, this year the bank has funded a range of voluntary programs designed to impact economic development and homeownership, including $4 million in AHEAD economic development grants, $2 million for the Empowering Black Homeownership program, and $10 million in the inaugural Middle-Income Downpayment Assistance program.

FHLB San Francisco and the FHLB System appreciates your ongoing partnership, and it will keep credit unions updated as new information becomes available. If your credit union has any urgent questions or concerns, please do not hesitate to contact your relationship manager.

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