Federal Home Loan Banks

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

April 24, 2015 - Inside The GSEs

Bill Lets Private Credit Unions Seek Membership in FHLB System

The House passed a bill last week that would allow privately-insured credit unions to apply for membership in the Federal Home Loan Bank System. H.R. 299, the Capital Access for Small Community Financial Institutions Act of 2015, was introduced by Reps. Joyce Beatty, D-OH, and Steve Stivers, R-OH, in January. Credit unions did not have federal insurance until 1970, and Stivers said that many small institutions decided to remain privately-insured and state regulated. While the number is small compared to the more than 6,000 credit unions in the country, the approximately 130 privately-insured credit unions spread out in nine states don’t meet the FHLB System guidelines. Stivers said that a “legislative oversight” has blocked FHLB membership for this small...


April 10, 2015 - Inside The GSEs

FHLBank Topeka Extends MPF Mortgage Investing To Members

The Federal Home Loan Bank Topeka now lets members invest in residential whole loan mortgages originated under the Mortgage Partnership Finance Program as an added opportunity and as a risk-sharing measure. This is the first time that an FHLBank has opened its shared credit risk program to members. Dan Hess, chief business officer and senior vice president of FHLBank Topeka, told Inside The GSEs that the bank has had a lot of success with the MPF program since it began 15 years ago and wanted to extend the opportunity to its members. “It’s been a high quality asset for us with a low level of defaults throughout the financial crisis,” he said.


April 10, 2015 - Inside The GSEs

Merger Creates Largest FHLB, More Than 100 Staff Laid Off

While creating the largest Federal Home Loan Bank in the system, both geographically and membership wise, about 75 percent of the Federal Home Loan Bank of Seattle workforce will be laid off due to a merger with the Federal Home Loan Bank of Des Moines. The merger, approved in December by the Federal Housing Finance Agency, officially goes into effect in June, trimming the Seattle bank’s workforce to just 35 employees in the regional office. About 109 employees will be laid off before 2015 ends. Both banks unanimously approved the merger and said it will result in a cooperative that is stronger than either bank on an individual basis. Once combined, the bank will be headquartered in Des Moines.


March 27, 2015 - Inside The GSEs

Bank, Thrift FHLBank Advances Up In Fourth Quarter 2014

Bank and thrift members had drawn a combined $437.7 million in Federal Home Loan Bank advances at the end of the fourth quarter of 2014, according to the Inside Mortgage Finance Bank Mortgage Database. That number represents an 11.6 percent increase from the previous quarter and an 18.8 percent increase from the same period a year earlier. Top-ranked JPMorgan Chase’s use of advances rose 8.3 percent and reflected its largest amount of advances used sequentially during 2014. The bank had drawn $60.0 million in the third quarter. Its advances were up 5.0 percent on a year-over-year basis. Second-ranked Wells Fargo remained steady with no quarterly percentage change of its $34.1 million in advances used. [exclusive data chart included]


March 20, 2015 - Inside Nonconforming Markets

Five Oaks Joins FHLB System, Plots Jumbo Growth

A moratorium of real estate investment trusts gaining membership in the Federal Home Loan Bank system ended recently when the captive insurer of Five Oaks Investment was approved as a member of the FHLBank of Indianapolis. The REIT revealed this week that Five Oaks Insurance gained FHLBank membership on Feb. 24. “FOI is currently negotiating agreements for advances with the FHLBank and, although no assurance can be given, FOI anticipates ...


March 20, 2015 - Inside MBS & ABS

Indianapolis FHLBank Admits Another REIT Captive Insurer Despite Proposed Ban

Despite the Federal Housing Finance Authority’s proposed rule that would block real estate investment trusts from joining a Federal Home Loan Bank through captive insurance units, the Indianapolis FHLBank approved a new REIT member. An insurance subsidiary of Five Oaks Investment Corp. was admitted on Feb. 24, according to the REIT’s 2014 annual report released this week. A handful of other REITs, including Two Harbors, Redwood Trust and Invesco ...


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The Supreme Court recently decided that mortgage loan officers are entitled to overtime pay. How has this affected your shop?

It's a very big deal, but our company will limit OT pay or pay very little.
It’s sort of a big deal, but we have no plans to pay overtime pay at all.
We have no problem paying our LOs OT.
We’re still studying the case and have not yet decided what to do.

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