Federal Home Loan Banks

Browse articles from all of our Newsletters related to Federal Home Loan Banks.

April 18, 2014 - Inside The GSEs

FHLBank Agency MBS Investments Rise During Fourth Quarter 2013

Fannie Mae and Freddie Mac mortgage-backed securities remained the preferred investment choice of the 12 Federal Home Loan Banks during the fourth quarter of 2013, though with a negligible increase from the previous quarter, according to a new analysis and ranking by Inside The GSEs based on data from the Federal Housing Finance Agency. Meanwhile, Ginnie Mae securities posted a sizable increase within the FHLBank system during the period ending Dec. 31, 2013. GSE MBS accounted for 74.9 percent of combined FHLBank MBS portfolios, 0.3 percent from the third quarter. The Finance Agency’s data do not separately break out Fannie and Freddie volume or share.


April 18, 2014 - Inside The GSEs

OIG: Four Big Bank Members Boost FHLB Advances, Reporting Needed

In the wake of sharp increases in commercial bank borrowing from the Federal Home Loan Bank system in order to keep up with new international bank-liquidity rules, the Federal Housing Finance Agency should be more transparent in reporting FHLBank advances, according to the agency’s official watchdog. The FHFA’s Office of Inspector General noted in an audit released Wednesday that FHLBank system advances have been increasing, reaching $492 billion by year-end 2013. The growth in advances has been driven primarily by the four largest members of the system – JPMorgan Chase, Bank of America, Citigroup and Wells Fargo.


April 4, 2014 - Inside The GSEs

BofA MBS Lawsuit Settlement Shrinks List of FHFA Defendants

It’s only a matter of time before the remaining big bank defendants settle lawsuits filed by the Federal Housing Finance Agency over billions in non-agency mortgage-backed securities sold to Fannie Mae and Freddie Mac in the years leading up to the housing crisis, predicts a legal expert. Last week, Bank of America agreed to a $9.3 billion settlement that covers its own dealings as well as those of Countrywide Financial and Merrill Lynch, which it acquired in 2008. The agreement covers some $57 billion of MBS issued or underwritten by these firms.


April 3, 2014 - Inside MBS & ABS

Judge Recommends Dismissal of DOJ’s Fraud Case Against BofA, But It May Not End FIRREA Claims

A North Carolina federal magistrate has recommended that a Justice Department fraud case against Bank of America be dismissed, but he also said a separate Securities and Exchange Commission lawsuit against the bank based on a different federal law should proceed. The DOJ last August filed suit against BofA under the Financial Institutions Reform, Recovery and Enforcement Act, accusing the bank of defrauding investors in the sale of $855 million of non-agency MBS. Last week, U.S. Magistrate David Cayer of the U.S. District Court for the Western District of North Carolina found that the government failed to prove the bank made “material” false statements to the former Federal Housing Finance Board. The DOJ claimed...


March 21, 2014 - Inside The GSEs

Bill to Open FHLBs to Privately Insured CUs Clears Committee

Legislation that would allow privately insured credit unions access to the Federal Home Loan Bank system cleared committee last week and is headed to the House floor for a vote. Introduced in December by Rep. Steve Stivers, R-OH, and Joyce Beatty, D-OH, H.R. 3584, the Capital Access for Small Community Financial Institutions Act of 2013, would amend the Federal Home Loan Bank Act to allow privately insured credit unions to be eligible for FHLBank membership. H.R. 3584 was voted out of the House Financial Services Committee by a vote of 55-0.


March 20, 2014 - Inside Mortgage Finance

Johnson-Crapo GSE Reform Bill Would Wind Down, Replace Fannie, Freddie in Five Years … Give or Take

The top Democrat and Republican of the Senate Banking, Housing and Urban Affairs Committee this week delivered their long-awaited mortgage reform bill which aims to put Fannie Mae and Freddie Mac out of business within a half-decade window, but with a couple potential leases on the lives of the two government-sponsored enterprises. In a rare Sunday filing, the legislation authored by Senate Banking Chairman Tim Johnson, D-SD, and Ranking Member Mike Crapo, R-ID, would set up a powerful new agency, the Federal Mortgage Insurance Corp., which could assume control of the GSEs within six months of enactment and begin writing new “catastrophic” mortgage-securities guaranties. Based on the bipartisan legislation introduced by Sens. Bob Corker, R-TN, and Mark Warner, D-VA last summer, the new bill adds...


March 7, 2014 - Inside The GSEs

FHLBank Advances Increased During Fourth Quarter, 2013

The advance business for the 12 Federal Home Loan Banks increased throughout 2013 ending the year ahead both on a quarterly and an annual basis, according to preliminary figures released by the Federal Home Loan Bank Office of Finance. Advances increased 7.2 percent to $498.6 billion during the fourth quarter of 2013 while posting an even larger 17.1 percent increase from $425.8 billion a year earlier. The Office of Finance attributed the increase in advances due to “higher member borrowing, particularly by large-asset members.”


March 7, 2014 - Inside The GSEs

New FinCEN Rule Requires Fannie, Freddie, FHLBanks to File SARs

Fannie Mae, Freddie Mac and the Federal Home Loan Banks will now be required to report directly any suspected fraud to the Financial Crimes Enforcement Network under the terms of a final rule. Published in the Feb. 25 Federal Register, the final rule adopts “without significant change” FinCEN’s November 2011 proposal to require the GSEs to file suspicious activity reports directly with FinCEN rather than through their own regulator, the Federal Housing Finance Agency.


Poll

What do you think is the biggest hurdle to meeting the new QM standards in the CFPB’s ability-to-repay rule?

A debt-to-income (DTI) cap of 43%.

48%

A 3% cap on points and fees.

29%

An interest rate cap of the average prime offered rate (APOR) plus 1.5%.

23%

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