[United States Government Manual]
[July 01, 1995]
[Pages 551-555]
[From the U.S. Government Publishing Office, www.gpo.gov]
FEDERAL HOUSING FINANCE BOARD
1777 F Street NW., Washington, DC 20006
Phone, 202-408-2500
Board of Directors:
Chairman (vacancy)
Members:
(Secretary of Housing and Urban Henry G. Cisneros
Development, ex officio)
Lawrence U. Costiglio
(2 vacancies)
Housing and Urban Development Nicolas P. Retsinas
Secretary's Designee to the
Board
Assistant to the Board Director Melissa L. Allen
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Officials:
Managing Director Rita I. Fair
Inspector General Edward Kelley
General Counsel Beth L. Climo
Director, Office of Examination and Regulatory Gary B. Townsend
Oversight
Director, Office of Policy and Financial Thomas D. Sheehan,
Reporting Acting
Director, Office of Housing Finance Sylvia C. Martinez
Director, Office of Congressional Affairs John K. Hardage, Acting
Director, Office of Public Affairs (vacancy)
Director, Office of Administration Patrick Pizzella
Executive Secretary Elaine L. Baker
[For the Federal Housing Finance Board statement of organization, see
the Code of Federal Regulations, Title 12, Part 900]
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The Federal Housing Finance Board is responsible for the administration
and enforcement of the Federal Home Loan Bank Act, as amended.
The Federal Housing Finance Board (Finance Board) was established on
August 9, 1989, by the Federal Home Loan Bank Act, as amended by the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989
(FIRREA) (12 U.S.C. 1421 et seq.), as an independent regulatory agency
in the executive branch. The Finance Board succeeded the Federal Home
Loan Bank Board for those functions transferred to it by FIRREA.
The Finance Board is governed by a five-member Board of Directors.
Four members are appointed by the President with the advice and consent
of the Senate for 7-year terms; one of whom is designated as Chairman.
The Secretary of the Department of Housing and Urban Development is the
fifth member and serves in an ex officio capacity.
The Finance Board supervises the Federal Home Loan Banks created in
1932 by the Federal Home Loan Bank Act and issues regulations and orders
for carrying out the purposes of the provisions of that act. Savings
associations, commercial banks, savings banks, credit unions, insurance
companies, and other institutions specified in section 4 of the act that
make long-term home-mortgage loans are eligible to become members of the
Federal Home Loan Bank. The Finance Board supervises the Federal Home
Loan Banks and ensures that they carry out
their housing finance mission,
remain adequately capitalized and able to raise funds in the capital
markets, and operate in a safe and sound manner. The functions of the
Finance Board with respect to the Banks and their members include:
prescribing rules and conditions under which the Banks may lend to
members and eligible nonmembers; issuing policies governing the Bank
System's financial management and investment activities; maintaining
Bank System financial and membership data bases and preparing reports on
a regular basis; overseeing the implementation of the community
investment and affordable housing programs; conducting a biennial review
of each member's community support performance; issuing consolidated
Federal Home Loan Bank obligations which are joint and several
obligations of all Federal Home Loan Banks; annually examining each
Federal Home Loan Bank; requiring an independent financial audit of each
Bank, the Office of Finance, the Financing Corporation, and the Bank
System; appointing six directors to the board of directors of each Bank
and conducting the election of the remaining directors by the members;
approving dividends paid to each Bank; and approving applications for
Bank membership. The Finance Board is not subject to the appropriation
process. Its funds are neither appropriated nor
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derived from Government funds, and are not subject to apportionment. The
expenses of the Finance Board are paid by assessment against the
regional Federal Home Loan Banks.
Regional Banks The System includes 12 regional Federal Home Loan Banks
that are mixed-ownership Government corporations. A board of directors,
six of whom are appointed by the Finance Board, manages the Banks. The
Finance Board conducts the election of the remaining directors.
Capital and Sources of Funds The Bank's principal source of capital is
stock, which members are required by law to purchase upon joining the
Bank System, and which is redeemed upon a member's withdrawal from the
System. The Banks fund their lending activity through the issuance of
Bank System consolidated obligations, which are the joint and several
liability of the Banks. Member deposits are an additional source of
funds. Bank System consolidated debt is issued by the Finance Board
through the Office of Finance, the Bank System's fiscal agent. The
Bank's consolidated obligations are neither obligations of, nor
guaranteed by, the United States.
Operations The Bank's primary activity is extending secured loans to
member institutions. Advances are generally collateralized by whole
first mortgage loans and mortgage-backed securities, as well as other
high-quality assets. In making advances, the Bank System serves as a
source of short- and long-term funds for institutions operating in the
mortgage markets as originators and holders of mortgage assets. The Bank
System does not set standards for the loans its members make; therefore,
members have the flexibility to develop responsive credit products and
underwriting standards. The Banks also enter into hedging transactions
as intermediaries with their members, which assists the members with
their asset-liability management.
Under the Affordable Housing Program (AHP), the Banks provide
subsidized advances or direct subsidies
to Bank members engaged in lending for long-term, owner-occupied and
affordable rental housing targeted to households with extremely low or
moderate incomes. AHP is a competitive program financed from a specified
percentage of each Bank's previous year's net income. For 1995 and
beyond, the greater of $100 million or 10 percent of the previous year's
net income will be available for the program.
Under the Community Investment Program (CIP), each Bank provides
advances priced at the Bank's cost of consolidated obligations of
comparable maturities plus reasonable administrative costs, to members
engaged in community-oriented mortgage lending. CIP advances are used
for loans to finance rental and owner-occupied housing for families
whose incomes do not exceed 115 percent of area median income and
commercial and economic development activities that benefit low- and
moderate-income families or that are located in low- and moderate-income
neighborhoods.
To maintain access to long-term advances, Bank members must
establish reasonable commitments to residential lending and community
support activities. Every 2 years, the Finance Board reviews the
community support performance of each member by taking into account
factors such as each member's Community Reinvestment Act performance and
its lending to first-time homebuyers. The Banks provide technical
assistance to their members in meeting the community support standards.
Financing Corporation
The Financing Corporation (FICO) was established by the Competitive
Equality Banking Act of 1987 (12 U.S.C. 1441) with the sole purpose of
issuing and servicing bonds, the proceeds of which were used to fund
thrift resolutions. The principal on the bonds was defeased with capital
contributions from the Banks. FICO has a three-member
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directorate, consisting of the Managing Director of the Office of
Finance and two Federal Home Loan Bank presidents.
FICO operates subject to the regulatory authority of the Federal
Housing Finance Board.
Sources of Information
Requests for information relating to human resources and procurement
should be sent to the Office of Administration, at the address listed
below.
For further information, contact the Executive Secretariat, Federal
Housing Finance Board, 1777 F Street NW., Washington, DC 20006. Phone,
202-408-2500. Fax, 202-408-2895.
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