    [United States Government Manual]
    [June 01, 2007]
    [Pages 405-408]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    FEDERAL HOUSING FINANCE BOARD

    1625 I Street NW., Washington, DC 20006

    Phone, 202-408-2500. Internet, www.fhfb.gov.
    Board of Directors:

    Chairman                                          Ronald A. Rosenfeld
    Members:                                          Geoffrey S. Bacino,
                                                              Alicia R.
                                                              Castaneda,
                                                              Allan I.
                                                              Mendelowitz
        Secretary of Housing and Urban                Alphonso R. Jackson
                Development, ex officio

    Officials:

    Inspector General                                 Edward Kelley
    General Counsel                                   Neil R. Crowley,
                                                              Acting

    [[Page 406]]

    Director, Office of Supervision                   Stephen M. Cross
    Director, Office of Management                    David A. Lee, Acting

    [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 ensures the safety and soundness of
    the Federal Home Loan Banks, their access to the capital markets, and
    the fulfillment of their housing finance mission.
    The Federal Housing Finance Board (Finance Board) was established by the
    Federal Home Loan Bank Act, as amended (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.
        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 to
    ensure that the Banks operate in a safe and sound manner, carry out
    their housing finance mission, and remain adequately capitalized and
    able to raise funds in the capital markets. Savings associations,
    commercial banks, savings banks, credit unions, insurance companies, and
    other institutions are eligible to become members of the Federal Home
    Loan Banks.

    Federal Home Loan Banks

    The Federal Home Loan Banks are privately capitalized government
    sponsored enterprises, created to stimulate mortgage finance and provide
    liquidity to credit markets. The Banks provide credit to members,
    including savings and loan associations, commercial banks, federally
    insured credit unions, and insurance companies, and nonmembers,
    principally housing finance agencies, for use in mortgage lending and
    related activities. They use short and long-term advances
    (collateralized loans) to fund their lending activities and to maintain
    liquidity for their operations. Long-term advances may be used only to
    support residential housing finance and lending to small businesses,
    small farms, and small agricultural businesses. Most of the collateral
    supporting advances consist of mortgage assets. In addition to advances,
    most of the Banks purchase qualifying mortgage loans from members under
    various acquired member asset programs. Under these programs, the Bank
    manages the market risk, while the members bear most of the credit risk
    associated with the loans.
    The Banks are required to promote housing and community investment
    finance. Each Bank allocates 10 percent of its annual net income to fund
    a subsidy program known as the Affordable Housing Program (AHP). Under
    the AHP, a member may submit an application to its Bank for funds to be
    used to finance the purchase, construction, or rehabilitation of housing
    for very low and moderate-income households. AHP funds are also awarded
    through the Homeownership Set-Aside Program in which members obtain AHP
    funds from the Bank to provide grants to eligible low and moderate-
    income households for down-payment or assistance with closing and
    counseling costs associated with purchasing or renovating a house.
    Capital and Sources of Funds  The Banks' principal source of capital is
    stock, which members are required to purchase as a condition of joining
    the Bank System. The Banks fund their lending and member asset
    acquisition activities through the issuance of Bank System consolidated
    obligations, which are the joint-and-several liability of all the Banks.
    These consolidated obligations consist of bonds (original
    [GRAPHIC] [TIFF OMITTED] T211657.038

    [[Page 408]]

    maturity of 1 year or longer) and discount notes (original maturity of
    less than 1 year). Consolidated obligations are not guaranteed or
    insured by the U.S. government. However, the Banks' status as government
    sponsored enterprises enables them to raise funds at rates slightly
    higher than comparable obligations issued by the U.S. Treasury. Member
    deposits are also an additional source of funds.

    Financing Corporation

    The Financinas 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 resolve
    failed savings associations. The Corporation has a three-member
    directorate, consisting of the Managing Director of the Office of
    Finance and two Federal Home Loan Bank presidents. FICO is subject to
    the general oversight of the Finance Board.

    For further information, contact the Federal Housing Finance Board, 1625
    I Street NW., Washington, DC 20006. Phone, 202-408-2500. Fax, 202-408-
    2895. Internet, www.fhfb.gov.

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