ICBA said it generally supports a Federal Housing Finance Agency proposal to amend Federal Home Loan Bank housing goals, but offered suggestions to improve its application.
The proposed rule would set a single prospective mortgage purchase goal as a share of each FHLBank’s total Acquired Member Asset purchases and eliminate the volume threshold. It would also set a goal for participation by small institutions and expand the eligibility criteria to enable federally backed loans to count toward goals.
In a comment letter, ICBA sought clarity on how FHLBanks would meet the standards during economic downturns and how the FHFA would treat non-compliance. ICBA also asked the FHFA to allow the FHLBanks to request alternative goals on an annual basis.
Read ICBA Comment Letter
Read the Proposed Rule