[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

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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


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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 Financinas 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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