Washington, D.C. – Yesterday the FHFA released its Equitable Housing Finance Final Rule, finalizing a range of changes in reporting and assessment requirements that mostly apply to the Enterprises, that is, Fannie Mae and Freddie Mac. However, FHFA also regulates the Federal Home Loan Banks and their new rulemaking included some additional oversight specific to FHLBanks.

Specifically, FHFA’s final rule establishes a requirement for the 11 Banks to provide narrative reports each year on the voluntary actions and programs they are undertaking to address barriers to housing opportunity for underserved communities. However, while requiring this minimal reporting, the rule falls short of requiring the Banks to actually take action on promoting fair housing, or to engage in sustained, ongoing planning as required of Fannie Mae and Freddie Mac in their Equitable Housing Finance Plans.

Sharon Cornelissen, Director of Housing at the Consumer Federation of America, commented:

“While the new reporting requirements for FHLBanks indicate some small progress, so much more needs to be done to hold this System accountable to its mission of supporting fair and affordable housing.”

“Getting stories from the FHLBanks about their “voluntary” programs is not enough. Given the $7.3B public subsidy they receive every year, the public can expect a much higher level of accountability and transparency about how FHLBanks are ensuring they support fair and affordable housing in communities across the nation – ranging from how they allocate advances, to their membership and investments, and affordable housing program contributions.”