FHFA Proposes Rule to Expand Access to Liquidity for the Federal Home Loan Banks

Washington, D.C. – RealEstateRama – The Federal Housing Finance Agency (FHFA) issued a notice of proposed rulemaking on Federal Home Loan Bank (FHLBank) Unsecured Credit Limits. The proposed rule would improve the FHLBanks’ ability to provide liquidity to members by aligning the treatment of interest-bearing deposit accounts (IBDAs) and other authorized overnight investments with the treatment of Federal Funds sales. This updated regulatory treatment would allow the FHLBanks to better manage and respond to the intraday liquidity needs of their members. The proposed rule also clarifies terms for the FHLBanks to determine limits on unsecured credit to counterparties.

“The Federal Home Loan Banks have played a key role in helping homeowners and renters obtain affordable, sustainable housing for over 90 years,” said FHFA Director Sandra L. Thompson. “These modernizations will create more flexibility for the FHLBanks in their liquidity management, which will allow them to better serve their members, particularly during periods of market stress.”

This proposed rulemaking follows extensive outreach and engagement with the FHLBanks and other stakeholders since the release of FHFA’s FHLBank System at 100: Focusing on the Future report in November 2023. FHFA will accept public comments on the proposed rule for 60 days following its publication in the Federal Register.

Unsecured Credit Limits for Federal Home Loan Banks

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The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $8.4 trillion in funding for the U.S. mortgage markets and financial institutions. Additional information is available at www.FHFA.gov, on X @FHFA, YouTube, Facebook, and LinkedInContact:

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