The FHLBanks' financial strength is important to the U.S. banking system because they play an essential role helping member institutions, big and small, meet housing finance and credit needs across the country in all economic cycles, according to Council of FHLBank president and CEO John von Seggern in his statement
today on the System’s preliminary unaudited year end 2013 combined operating highlights.
The FHLBank model works in large part because it increases the competitive position of small and medium-sized lender members by permitting them to benefit from economies of scale provided by the members who are our larger member institutions, according to Council of FHLBank president and CEO John von Seggern in his statement
today on the System’s preliminary unaudited third quarter 2013 combined operating highlights.
The American Bankers Association (ABA) says the FHLBanks have a problem.
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In partnership with its member institutions, the Federal Home Loan Bank of Dallas announced that $7,590,375 in Affordable Housing Program (AHP) grants has been awarded to 27 affordable housing projects in 2012.
Each year, the Bank returns 10 percent of its profits in the form of AHP grants to assist in the development of affordable owner-occupied and rental housing for very low- to moderate-income families throughout the Bank's five-state District of Arkansas, Louisiana, Mississippi, New Mexico, and Texas. The grants are made available through the Bank's member institutions and are awarded on an annual basis.
AHP grants may be used to purchase, construct, or rehabilitate single-family, transitional, and multifamily projects for very low- to moderate-income households.
"AHP has served as a critical funding source in assisting our member financial institutions in meeting the emerging housing needs in their respective communities," said Bank President and CEO Terry Smith. "AHP continues to be a crucial source of gap funding for many of the affordable housing projects that are being funded this year. From assisting low-income, first-time homebuyers to rehabilitating a facility that houses abused children, the funds will be put to good use."
AHP funding is utilized for a variety of projects, including emergency home rehabilitation for low-income, elderly and disabled residents; down payment and closing cost assistance for qualified first-time homebuyers; and the development and construction of low-income, multifamily apartment communities and single-family subdivisions
The nation’s 12 Federal Home Loan Banks are sponsoring the future home of a California family in need as a national underwriter of the American Bankers Association’s annual industry-funded Habitat for Humanity build on October 13, 2012.
“We’re grateful to America’s Federal Home Loan Banks for their generous commitment of $25,000 to this year’s build and applaud their ongoing support of affordable housing,” said Frank Keating, president and CEO of American Bankers Association. “With the support of FHLB and banks across the country, we will build a home for a deserving family. The banking industry has been and continues to be strongly committed to providing safe, decent housing for families in communities nationwide.”
The 12 Federal Home Loan Banks are cooperatives owned by their members who are more than 7,700 community financial institutions of all sizes and many types in every U.S. state and territory. Created by Congress, the purpose of the Federal Home Loan Banks is to be a strong and reliable source of funds for local lenders to finance housing, jobs and economic growth.
“Part of our overall mission is to support community revitalization in all regions of the country and to further the expansion of homeownership,” said John von Seggern, president and CEO of the Council of Federal Home Loan Banks. “This project achieves both goals and we are proud to support it.”
The ABA Housing Partners Foundation, in conjunction with the California Bankers Association, is gathering donations from bankers in California and across the country to fund the foundation’s goal of $150,000. The home will be built in Imperial Beach, a small town just south of San Diego-Coronado and north of Tijuana, Mexico, and the overall project led by San Diego Habitat for Humanity will consist of four single-family homes.
October 2012 will mark the foundation’s twelfth build highlighting ABA members’ contribution of $2 million and more than 5,500 volunteer hours in the past eleven builds.
The foundation’s mission is to promote and provide affordable housing in all communities, specifically those cities that host ABA’s Annual Convention. Supported entirely by donations, the foundation has been making a difference for 20 years.
Learn more about the ABA Housing Partners Foundation and make your contribution by visiting the website at aba.com/HousingPartners.
The Federal Home Loan Bank of Topeka, through Capitol Federal Savings Bank, is providing a $25,000 economic development grant to the E.C. Tyree Health & Dental Clinic in Wichita, which serves the uninsured and underinsured in the community.
The Federal Home Loan Bank of Indianapolis, with the Indiana Housing and Community Development Authority, will fund new affordable senior housing; a 63-unit apartment complex will open near the United Way Center in Columbus, Ohio.
The Federal Home Loan Bank of Atlanta will provide a $1 million grant to Pinellas Heights, which will offer one- and two-bedroom apartments for income-qualified people 62 years and older.
The Federal Home Loan Bank of Cincinnati will give $250,000 to Dayton Firefighters Federal Credit Union and Dayton Habitat for Humanity to help build 10 homes in the Dayton area. The Federal Home Loan Bank of Cincinnati has also awarded $9.5 million in Affordable Housing Program funds 37 developments. The grants will help create 685 units of affordable housing in Kentucky, Ohio and Tennessee.
The Federal Home Loan Bank of San Francisco awarded $16.5 million in grants in the first round of its 2012 AHP funding competition. The grants were awarded through 20 Bank members to 37 projects that will produce or preserve 1,573 units of housing affordable to lower-income individuals and families in Arizona, California, Colorado, Idaho and Illinois.
The Federal Home Loan Bank of Des Moines has sponsored Habitat for Humanity-Winona Fillmore County’s 46th “home build”. The 1,300-square-foot, three-bedroom house in Winona will be home to Khoua & Lee Yang and their two children. In addition to volunteer hours, the Federal Home Loan Bank of Des Moines is making a $75,000 donation to Habitat for Humanity Winona-Fillmore Counties to finance construction of the Yang home.
The Federal Home Loan Bank of Boston is teaming up with student volunteers from Bike & Build, a nonprofit organization whose mission is to create affordable housing across the nation through cross-country bicycle trips to raise funds and awareness. In addition, all 12 Federal Home Loan Banks have joined together to donate a total of $60,000 to support Bike & Build's affordable housing mission.
The Federal Home Loan Bank of Seattle will be donating up to $480,000 in grant money to the YWCA in Yakima, WA. "The funds have helped with affordable housing for transitional purposes for women that are victims of domestic abuse," said president and CEO, Michael Wilson.
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The Federal Home Loan Bank of Atlanta announced that applications for its 2012 Affordable Housing Program (AHP) competitive funding cycle will be available on June 1, 2012. At least $13.5 million in grants will be awarded, with up to $500,000 awarded per project. The deadline for submitting applications is July 2, 2012.
FHLBank Atlanta’s AHP competitive grant funding can be used to assist with the acquisition, construction, rehabilitation, and development of affordable rental and ownership housing. Nonprofit and for-profit developers that work with FHLBank Atlanta member financial institutions should submit an application no later than July 2, 2012. A list of member financial institutions is available on the FHLBank Atlanta website at www.fhlbatl.com
Council president and CEO, John von Seggern, said that the preliminary unaudited first quarter 2012 combined operating highlights showed America’s Federal Home Loan Banks to be maintaining a strong and growing capital base.
“The Federal Home Loan Banks’ continuing reliability in making favorably priced funding available to all their members demonstrates that they remain one of the best mechanisms for preserving a competitive U.S. financial system,” von Seggern said in a statement.
“The 12 Federal Home Loan Banks are regional cooperatives that provide community financial institutions, of all sizes and many types, access to the global credit markets so that thousands of local institutions can compete,” he said.
“That is good for consumers and local businesses because this competition among community lenders creates fair and dependable access to credit. That is critically important in an economy where it is vital to have credit flowing to all of our communities for housing, jobs and economic growth,” said von Seggern.
The Federal Housing Finance Agency (FHFA) has terminated all remaining provisions of the consent cease and desist order applicable to the Federal Home Loan Bank of Chicago. The order was terminated because of improvements in the FHLBank's financial condition and capital position, resolution of risk management concerns, and consideration of specific commitments and assurances made by the FHLBank's board of directors to FHFA. In particular, the board has committed to limiting dividends and to maintaining retained earnings at least at the level of the previous year-end. The FHLBank has also committed to reduce excess stock so long as certain financial thresholds are maintained.
"The Chicago FHLBank's improvements in earnings, capitalization, and risk management coupled with its conversion to a new capital structure represent significant achievements in the bank's recovery," said FHFA Acting Director Edward J. DeMarco. "The bank has satisfied the requirements of the order and has committed to focus its business activities on advances to members." (source: FHFA)
Indiana's Consumers Credit Union is offering custom-made mortgages and home buyer grants for qualified first-time home buyers until July 15. Consumers is one of the few credit unions in the state offering this Federal Home Loan Bank of Indianapolis program. CCU will offer grants up to $7,500 per person for qualifying first-time home buyers. The program is designed to assist eligible and qualified first-time home buyers achieve by providing cash assistance with their down payments and closing costs. Benefits of the Home Buyer Grant include a 3 percent down payment, provided by the borrower. The grant can be used in conjunction with any mortgage loan program at Consumers and up to $7,500 per qualifying borrower (source: Holland Sentinel).
The Federal Home Loan Bank of Dallas is now offering Home Buyers Equity Leverage Partnership Program (HELP) grants. This is a qualified first time homebuyer’s grant offered from Peoples State Bank. Each bank is permitted up to $40,000 to be used on down payments and closing costs.
The Federal Home Loan Bank of Atlanta has recently announces it will give $3.5 million to aid in the funding of several affordable housing developments in North Carolina. This money will go to improving the living conditions for low and moderately low income families in need of housing.
The Federal Home Loan Bank of Cincinnati announced it will grant funding of $1 million for Mountain Comprehensive Care Center and Citizens National Bank. The funding will aid the Care Center in new treatment facilities after more funding is obtained.
The Federal Home Loan Bank of Seattle recently announced West Coast Bank as the winner of the Community Spirit Award. This award is given for exceptional use in enhancing the economic and living situations in certain areas. The West Coast Bank has appropriated these funds to create job growth and better low-income housing for the community area.
The Federal Home Loan Bank of Pittsburgh has given a $200,000 grant to aid the Our Town Foundation. This Affordable Housing Program grant will go to fifteen of Hamburg, Berks County community members to improve their properties. The money will assist community members such as senior citizens who are in need of financial aid for home repairs due to their fixed incomes. After the first fifteen homes are repaired the remaining funds will go to other individuals in the area who are also in need of assistance.
The Federal Home Loan Bank of New York announced that, in response to the damage done to many local communities due to Hurricane Irene, the FHLBNY has committed to provide up to $500 million in disaster relief loans to begin the process of rebuilding communities designated by FEMA as disaster areas. The funds are being made available by the FHLBNY through its Community Lending Programs ("CLP") to be used as immediate gap financing.
New figures show that the Federal Home Loan Banks are important contributors to the U.S. economy. Council president and CEO, John von Seggern, says that the preliminary unaudited 2011 second quarter operating highlights released by the Office of Finance demonstrate the Federal Home Loan Banks continue to successfully support housing, jobs and economic growth by channeling capital from global markets to consumers and communities. PDF
In a statement
, the Council’s president and CEO commented on the Preliminary Unaudited First Quarter 2011 Combined Operating Highlights for the Federal Home Loan Banks announced on April 29 by the Office of Finance. John von Seggern said the highlights show that the 12 regional cooperatives “continue to serve as an important supply of long-term funding and liquidity for thousands of U.S. community lending institutions.”
FHLBanks Unveil Plan to boost capital. Read Statement
by Council of FHLBank president and CEO John von Seggern on the System Capital Initiative to enhance capital and strengthen safety and soundness. See Q&A on the Joint Capital Enhancement Agreement
adopted in February 2011 by the FHLBank System. The passage of the agreement by the boards of directors of all 12 FHLBanks permitted the launch of the System capital Initiative.
The 2010 financial highlights released by the Federal Home Loan Banks' Office of Finance
show the 12 FHLB Banks are managing their business prudently while maintaining a flow of funds to support housing, businesses, jobs and economic growth, according to Council of Federal Home Loan Bank president and CEO John von Seggern. “The year-end numbers indicate that we remain steady in our purpose and on track in a tough economic environment,” von Seggern said. “The Federal Home Loan Banks are a mechanism for economic stability because they continue to be a reliable source of funds from the global markets to local communities through their member institutions.”
In its recent housing reform white paper, the Obama Administration cites the important role FHLBanks play for U.S. financial institutions. A statement
from the Council points to issues in the Administration's proposals that require careful consideration.
The FHLBank of Dallas
and Community Trust Bank recently awarded a $120,000 AHP grant to the Rays of Sonshine, to help fund the construction of 12 new homes for very low-income residents. The organization provides residential and intensive outpatient services for women and women with children seeking recovery from substance abuse. "The Federal Home Loan Bank of Dallas is allowing us to incorporate energy efficient technology, such as tankless hot water heaters and extra insulation, into the homes so that they will be affordable from a utilities standpoint," said Kim Golden, neighborhood project facilitator.
The FHLBank of Chicago
announced recently that IFF, the nonprofit lender and real estate consultant, has joined as a member—making IFF the first Community Development Financial Institution, (CDFI) loan fund to join the FHLBank Chicago and only the sixth CDFI to join the FHLBank System nationally. “We look forward to partnering with them providing funding for projects that highlight our shared commitment to affordable housing and community investment.” said Matt Feldman, President and CEO of the FHLBank of Chicago.
FHLBank of Pittsburgh
recently announced that affordable housing projects in Fairmont, Fayette County, Huntington, McDowell County, Wheeling and White Sulphur Springs have been awarded nearly $800,000 in AHP grants. The $791,000 in grant awards brings the total commitment of the AHP program up to $11 million and 1,400 affordable housing units in West Virginia to date. “The Federal Home Loan Bank of Pittsburgh is pleased to help improve the stock of affordable housing in the Mountain State,” said Winthrop Watson, the Federal Home Loan Bank’s president and chief executive officer.
St. Louis Community Credit Union and Better Family Life, Inc. received two grants totaling $1 million from the FHLBank of Des Moines’
Affordable Housing Program. $500,000 is to provide first-time home buyers with down payment and closing cost assistance, in addition to home ownership education for city and county residents. The remaining $500,000 will be used for repair services on other qualifying homes.
The FHLBank of Topeka
, Kansas has awarded a 324,000 affordable housing grant to BancFirst and OKC Metro Alliance to help build a 56 unit Firststep Women’s Recovery Center. It is a long term work recovery program for women, who are working toward becoming sober. It will be built on 33 acres in southeast Oklahoma City.
The FHLBank of Boston
, as part of the annual competition, allows community development groups to propose a location, and pairs them with teams of design students. The student design for a development to revamp and add affordable housing units to the Fields Corner Library building won the $10,000 first place prize recently. The team specifically suggested renovating the Fields Corner library site to create 24 affordable family and senior apartments, as well as a multi-use learning center, and a new library. The Federal Home Loan Bank of Boston has also awarded the Dime Bank, for the sixth consecutive year, a $100,000 grant in 2011.