In its comments on the Federal Housing Finance Agency’s (FHFA) draft Strategic Plan: Fiscal Years 2026–2030, the Council of Federal Home Loan Banks expressed support for the agency’s ongoing efforts, led by Director Bill Pulte, to modernize oversight and lessen needless regulatory burdens on the Federal Home Loan Banks (FHLBanks).
In addition to praising FHFA’s recent actions to remove out-of-date guidelines and advisory bulletins that were not open to public notice and discussion, the Council’s letter suggests integrating the objective of lowering needless regulatory burdens across the supervisory framework of the FHLBank System. Additionally, the Council calls on FHFA to make sure that regulations and regulatory guidelines enable the FHLBanks to effectively fulfill their fundamental liquidity mandate, which promotes affordable housing, community development, and housing finance.
The Council’s remarks draw attention to how specific rules and advisory bulletins have restricted the 11 FHLBanks’ capacity to offer liquidity to their members. They also urge FHFA to keep improving these frameworks in order to better align them with safety and soundness goals while enabling the System to take more action to address housing issues across the country.
The letter also calls for changes to the rules regulating the FHLBanks’ Affordable Housing Program (AHP) and cites a comment letter from August 2024 that offers detailed suggestions for increasing the use of AHP funds to meet urgent housing needs.
“Director Pulte has proposed a strategic plan that charts a bold path to sustain the FHLBank System’s long-term stability and impact,” said Ryan Donovan, President and CEO of the Council of Federal Home Loan Banks. “We will be a constructive partner to ensure the FHLBanks keep delivering reliable liquidity in a safe and sound manner to help keep mortgage credit affordable.”
Additionally, the Council reiterated the FHLBanks’ pledge to work with FHFA to improve the Affordable Housing Program and use both mandated and voluntary programs to increase the supply and affordability of housing in each of the 11 FHLBank districts.
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