[United States Government Manual] [June 01, 2001] [Pages 411-414] [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 Allan I. Mendelowitz Members: Franz S. Leichter, J. Timothy O'Neill, (vacancy) (Secretary of Housing and Urban Mel R. Martinez Development, ex officio) Housing and Urban Development (vacancy) Secretary's Designee to [[Page 412]] Assistants to Board Director Julie P. Fallon, Charles D. Jones, Linda Fleming McGhee Officials: Managing Director James L. Bothwell Director, Office of Communications Stephen P. Hudak Director, Office of Policy, Research, and Scott L. Smith, Acting Analysis Director, Office of Resource Management David A. Lee, Acting Director, Office of Supervision Mitchell Berns General Counsel Deborah F. Silberman Inspector General Edward Kelley 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] ------------------------------------------------------------------------ The Federal Housing Finance Board is responsible for the administration and enforcement of the Federal Home Loan Bank Act, as amended. [GRAPHIC] [TIFF OMITTED] T188578.040 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 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 and remain adequately capitalized and able to raise funds in the capital markets. The functions of the Finance Board include: --prescribing rules and regulations governing the Bank System's capital, lending, 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; --annually examining each Federal Home Loan Bank and the Office of Finance; --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, each of which is a Government-sponsored enterprise, [[Page 414]] owned by its members. Each Bank is managed by its board of directors, which is comprised of appointed public interest and elected 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. In accordance with the Gramm-Leach-Bliley Act, which became law on November 12, 1999, the Finance Board has adopted regulations for a new risk-based capital structure for the Banks, which will replace the current capital structure upon implementation of each Bank's capital structure plan, which is to be developed by the Bank and approved by the Finance Board. The new capital structures are subject to possible transition periods of up to 3 years. The Banks fund their lending activity through the issuance 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 Federal Home Loan Banks 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 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.