How Congress Can Unlock $600 Million More Every Year for Affordable Housing
Congress chartered the Federal Home Loan Bank (FHLB) System in 1932 to help lower housing costs by providing reliable, affordable liquidity to institutions engaged in mortgage lending. As government-sponsored enterprises (GSEs), the FHLBs receive an estimated $7.3 billion in public subsidies each year, according to the Congressional Budget Office. But the FHLBs have strayed from their housing mission. The majority of FHLB loans (“advances”) now go to the nation’s largest banks and insurance companies. The benefits of the System have increasingly skewed towards maximizing profits and executive pay rather than meeting the nation’s housing needs.
Learn how Congress can unlock $600 million more every year for affordable housing by implementing responsible reforms to the FHLB System.
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