    [United States Government Manual]
    [June 01, 1999]
    [Pages 538-541]
    [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. Internet, http://www.fhfb.gov/.
    Board of Directors:

    Chairman                                          Bruce A. Morrison
    Members:                                          J. Timothy O'Neill, (2
                                                              vacancies)
        (Secretary of Housing and Urban               Andrew M. Cuomo
                Development, ex officio)

            Housing and Urban Development             William C. Apgar
                    Secretary's Designee to
                    the Board
            Special Assistant to the                  Stephen P. Hudak
                    Chairman
            Executive Assistant to the HUD            James H. Gray
                    Secretary
            Assistant to Board Director               Julie Fallon Stanton

    Officials:

    Managing Director                                 William W. Ginsberg
    Inspector General                                 Edward Kelley
    General Counsel                                   Deborah F. Silberman
    Director, Office of Supervision                   Mitchell Berns
    Director, Office of Policy, Research, and         James L. Bothwell
            Analysis
    Director, Office of Congressional Affairs         Randall H. McFarlane
    Director, Office of Public Affairs                Naomi P. Salus
    Director, Office of Resource Management           Barbara L. Fisher
    Director, Office of Strategic Planning            Karen H. Crosby
    Secretary to the Board                            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

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    executive branch. The Finance Board succeeded the Federal Home Loan Bank
    Board for those functions transferred to it by FIRREA.
        The Finance Board is managed 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 the four is designated as
    Chairperson. 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 12 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 Banks. The Finance Board supervises the
    Federal Home Loan Banks and ensures that they carry out their housing
    finance and community investment 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 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 establishing the rules by which the Banks elect the remaining
    directors; and
        --setting standards for the review and approval of applications for
    Bank membership.
        The Finance Board is not subject to the appropriation process. Its
    funds are neither appropriated nor 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. Each Bank is managed by its board of
    directors, six of whom are appointed by the Finance Board. The Banks
    conduct the election of the remaining directors.
    Capital and Sources of Funds  The Banks' 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 by
    the Finance Board of Bank System consolidated obligations, which are the
    joint and several liability of all 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 Banks' consolidated obligations are neither
    obligations of, nor guaranteed by, the United States.
    Operations  The Banks' primary activity is extending secured loans
    (advances) 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

    [[Page 541]]

    in the mortgage markets as originators and holders of mortgage assets.
    Because the Bank System does not set standards for the loans its members
    make, 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 very low, low, or moderate incomes. This
    competitive program is financed from a specified percentage of each
    Bank's previous year's net income. The greater of $100 million or 10
    percent of the previous year's net income is 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. 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. The Corporation has a three-member
    directorate, consisting of the Managing Director of the Office of
    Finance and two Federal Home Loan Bank presidents.
        The Financing Corporation 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 Resource Management, 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. Internet, http://
    www.fhfb.gov/.

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