FOR IMMEDIATE RELEASE
ICBA Applauds Housing Finance Board’s Action On Selection Process for Appointed Directors
Washington, D.C. (January 18, 2007)—The Independent Community Bankers of America (ICBA) applauds the Federal Housing Finance Board for creating a director selection process for appointed Federal Home Loan Bank (FHLB) directors that is more transparent and relies on a skills-based method of choosing directors.
"Today's actions by the Finance Board are an important step in setting up a transparent selection process that focuses on ensuring that the appointed directors have the appropriate skills and understand the business needs of the complex FHLBs," said Terry J. Jorde, ICBA chairman and president and CEO of CountryBank USA, Cando, N.D. "By approving this interim rule, the finance board is also helping communities nationwide to have a voice in fulfilling the credit needs of their community."
ICBA also was pleased that today's action is another step by the Finance Board to fill appointed directors' seats that it had left open, pending passage of regulatory reform legislation for the housing government-sponsored enterprises. "We are happy to see that the FHLBs will soon have the full complement of directors needed to oversee their operations to ensure that these institutions remain a safe, sound and stable source of funding for community banks to rely on for business, commercial and residential loans," said Jorde.
The Federal Home Loan Bank Act authorizes the Finance Board to appoint public interest directors to FHLB boards of directors; FHLB members also elect directors.