Federal Home Loan Banks

The Federal Home Loan Banks ( FHL Banks, English:. FHL Banks) are twelve regional operating in the United States, cooperative mortgage lenders. Owner ( "member - owners" ) are a total of approximately 8100 financial institutions. Business purpose of the FHL banks mortgage funding of its member institutions. The means to this end they acquire in the capital market by issuing common bonds through their Office of Finance.

The " FHLB system" was established in 1932 by the U.S. Congress to develop cheaper sources of financing for private housing after private loans were virtually dried up in this area through the Great Depression. The FHL Banks have the status of a government sponsored enterprise (GSE ), but do not have an explicit government guarantee. As a quasi-government institutions have the FHL banks by the rating agencies still the best possible credit ratings.

Inspectorate of the FHL banks is the Federal Housing Finance Board ( FHFB ). The U.S. Treasury calls, all mortgage companies with GSE status ( Fannie Mae, Freddie Mac and the FHL Banks) be placed under a common authority.

When non-listed companies, the FHL banks not subject to the reporting requirements of the U.S. Securities and Exchange Commission. Voluntary registration with the SEC is currently being discussed.

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