[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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