FHL bank

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The Federal Home Loan Banks ( FHL banks ) are eleven regionally active cooperative mortgage banks in the USA . Owners (“member-owners”) are a total of around 8,100 financial institutions. The business purpose of the FHL banks is to refinance the mortgage loans of their member institutions. The funds for this are obtained on the capital market by issuing joint bonds through their Office of Finance .

The "FHLB-System" was founded in 1932 by the US Congress to develop cheap sources of finance for private housing after personal loans in this area had practically dried up due to the Great Depression that began in 1929 . The FHL banks have the status of a state-funded US company ( government-sponsored enterprise , GSE), but do not have an explicit government guarantee. As state-affiliated institutions, the FHL banks still receive the best possible credit ratings from the rating agencies .

The Federal Housing Finance Board (FHFB) is the supervisory authority for FHL banks . The US Treasury Department demands that all mortgage banks with GSE status ( Fannie Mae , Freddie Mac and the FHL banks) be subject to a joint regulatory authority.

As a non- listed companies , the FHL banks not subject to the reporting requirements of the US Securities and Exchange Commission SEC . Voluntary registration with the SEC is currently being discussed.

The two Federal Home Loan Banks in the cities of Des Moines and Seattle were merged on June 1, 2015, so that the total number of FHL banks fell from an original twelve to eleven.

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Web links

Individual evidence

  1. George C. Ford: Federal home loan banks complete merger. In: The Gazette. June 1, 2015, accessed October 28, 2015 .