Download Conference Presentations - Mortgage Lending Industry ...

H.R 3221 DIVISION A – TITLE II - FEDERAL HOME LOAN BANKS
NEW REGULATOR - This title changes the regulation of the Federal Home Loan Banks by
placing the Banks under the same regulator as Fannie Mae and Freddie Mac. The new regulator,
the Federal Housing Finance Agency (FHFB), replaces the Federal Housing Finance Board as
the regulator of the Federal Home Loan Banks.
UNIQUE NATURE OF THE SYSTEM TO BE CONSIDERED- The Director of the FHFA
is required to take into consideration the FHLBanks‘ cooperative structure; mission to provide
liquidity, affordable housing and community development; capital structure, and joint and
several liability before issuing any regulation, examination or advisory document.
FHLB BOARDS OF DIRECTORS - Sets the Board of Directors of each FHLBank at 13
members or any other number determined by the Director of the FHFA. Each board must be
made up of at least a majority of members of the FHLBank, with independent directors
(including public interest directors) comprising not fewer than 2/5 of each board.
At least two of the independent directors must be public interest directors with more than four
years experience in banking, credit, housing or consumer financial protection. Independent
directors cannot serve as an officer of any FHLBank or as an officer, director or employee of a
member bank or entity that receives advances from a FHLBank.
Board members are to be elected by a plurality vote and must be U.S. citizens.
Independent directors shall be elected from eligible persons nominated by the Board of Directors
of each FHLBank. Election shall be by a plurality vote of the membership.
Director terms set at 4 years (current term is 3 years).
The Director of the FHFA is required to submit an annual report to Congress on the
compensation and expenses paid by each FHLBank to board members.
Current directors shall serve until the end of their existing term.
ISSUANCE OF CONSOLIDATED OBLIGATIONS– Replaces the Federal Housing Finance
Board with the Office of Finance as the issuer of consolidated obligations of the Federal Home
Loan Banks.
HOUSING GOALS – Subjects the Federal Home Loan Banks to housing goals consistent with
those required for Fannie Mae and Freddie Mac for any mortgages purchased by any Federal
Home Loan Bank. In establishing goals for the FHLBanks, the Director of the FHFA must
consider the unique mission and ownership structure of the Federal Home Loan Banks.
COMMUNITY DEVELOPMENT FINANCIAL INSTITUIONS – Allows CDFIs to join the
FHLBank System.
AMERICAN BANKERS ASSOCIATION 5