What is the federal housing loan system?
In 1932, the United States Congress created a federal housing loan system in response to the impact of depression on the ownership of the house. The purpose of the system was to slow down the number of seizures, stimulate the construction industry and increase the ownership of the house. A five -member Federal Housing Council was established, which leased and supervised the savings bank or savings and loans (S&L) and the bank was created to provide membership institutions for low -interest mortgages. The federal housing loan system, as exists today, is a company sponsored by a government consisting of 12 cooperatively owned federal banks for housing loans (FHLB), which acts as a source of liquidity for more than 8,000 member financial institutions. In response to Congress, he canceled the Federal Housing Council in 1989 and replaced it by the Federal Housing Council, which was charged with the banking system. At that time, membership was extended by Komerční banka, Cooperative ReserveNY and insurance companies in addition to traditional disputes. In 1999, the Gramm-Leach-Bliley Act expanded its access to the agricultural bank to the federal housing loan system in an effort to provide financing for rural development. In 2008, responsibility for supervision moved again and became the responsibility of the Federal Housing Financing Agency, which also oversees Freddie Mac and Fannie Mae.
TheFederal Housing Bank system is considered to be a government -sponsored entity because it was created by a congress that gave several benefits to help reducing the overhead costs. These include exemptions from legal income tax and exemption from the requirements for registration of securities and exchange for their debt tools. Twelve banks receive money by selling remarks and bonds on financial markets, which in turn lend to membership institutions for low levels to finance mortgages.
dvAnát Bank, which consists of a federal housing loan system, is located regionally various American cities. Banks, thrift, credit unions and insurance companies are welcome to join the bank in their region, provided they meet certain criteria. For example, members must have 10% of their portfolio of assets in mortgages or to be marked as community financial institutions. FHLBs are all separate legal entities and each follows their own 14 Member Council, most of which are elected by financial institutions of members.
Federal loan system on home loans also participates in the program of affordable housing (AHP) established by Congress in 1989. Each of the 12 FHLBS are contributing 10% of its net income in the form of grants to AHP. Funds are paid on a competitive basis for projects sponsored by Member Financial Institutions that work in conjunction with localnon -profit organization.