[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

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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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