[United States Government Manual]
[June 01, 2000]
[Pages 416-419]
[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, 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

Officials:

Managing Director                                 William W. Ginsberg
Director, Office of Communications                Stephen P. Hudak
Director, Office of Information Management and    Hung Phan
        Technology Support
Director, Office of Policy, Research, and         James L. Bothwell
        Analysis
Director, Office of Resource Management           Barbara L. Fisher
Director, Office of Supervision                   Mitchell Berns
General Counsel                                   Deborah F. Silberman
Inspector General                                 Edward Kelley

[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 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 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


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T186873.040

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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-mortgageloansare 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 regulations governing the Bank System's 
capital, lending, financial management, and investment activities;
    --issuing policies governing the Bank System's financial management 
and investment activities;
    --maintaining Bank System financial and membership databases 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 public interest 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.

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, and public interest and industry directors. The Finance Board 
appoints the public interest directors, and 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. Under the Gramm-Leach-Bliley Act, advances to 
community financial institutions may also be made to finance small 
businesses, small farms, and small agribusinesses, and advances to such 
members may be secured by secured small business loans and agricultural 
loans.
    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

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consolidated obligations of comparable maturities plus reasonable 
administrative costs, to members engaged in community-oriented mortgage 
lending.

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 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, www.fhfb.gov.

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