Another GSE designed to help home owners. Everybody wants to help us. The net result is that they are bankrupting us. This is their mission statement from their website. What amazes me is the number and size of institutions feeding on the housing sector.
The FHB system overview. A Regional Cooperative of Twelve FHLBanks:
There are twelve Federal Home Loan Banks (FHLBanks), each with its own president and board of directors, located in different regions of the country, with twelve distinct sets of customers, all with differing kinds of demand for their products, services and expertise. The FHLBanks' cooperative structure is ideal for serving the System's 8,100 member lenders. Each regional FHLBank manages and is responsive to its customer relationships, while the twelve FHLBanks use their combined size and strength to obtain the necessary funding at the lowest possible cost.
How FHLBanks Help Communities:
The FHLBanks provide billions of dollars of primary liquidity to approximately 80% of the nation's financial institutions. By providing this assured liquidity to its members, the FHLBank System allows member institutions to remain active lenders, in all economic cycles, to help their local economies grow.
Mission:
"The mission of the Federal Home Loan Banks is to provide cost-effective funding to members for use in housing, community, and economic development; to provide regional affordable housing programs, which create housing opportunities for low- and moderate-income families; to support housing finance through advances and mortgage programs; and to serve as a reliable source of liquidity for its membership."
"FHLBank Advances. Advance lending is the FHLBanks' main business line. It currently represents about two-thirds of all the FHLBanks assets. These loans, known as advances, are well-collateralized loans used by members to support mortgage lending, community investment and other credit needs of their customers.”
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