MBA Statement on FHFA’s Review of the Federal Home Loan Bank System

WASHINGTON, D.C. (November 7, 2023) — Pete Mills, Senior Vice President of Residential Policy and Strategic Industry Engagement at MBA, issued the following statement regarding the release of the Federal Housing Finance Agency’s (FHFA) review of the Federal Home Loan Bank (FHLB) System:

“MBA is disappointed that the report fails to engage in a more meaningful examination of the potential benefits of diversifying the FHLB system through the expansion of membership to other critical providers of mortgage origination, servicing, and investment activities.

“The FHLBs would benefit from a membership base that better reflects today’s housing finance system, including independent mortgage banks (IMBs), who originate and service most mortgages, and mortgage REITs, which are important long-term holders of mortgages and mortgage-backed securities. A more diverse FHLB membership would reinvigorate the system and expand access to credit, lower pricing, and increase choices for consumers.  

“There do appear to be positive themes in the report related to various issues regarding multifamily lending and affordable housing.

“MBA will remain engaged with FHFA, the FHLBs, and lawmakers on both sides of the aisle on any future proposals or legislation affecting the FHLBs and will continue to advocate for expanding membership to institutions like IMBs and mortgage REITs that are almost exclusively focused on housing finance, while ensuring the safety and soundness of the FHLB system.”