In recent years, a number of financial entities with different business models have sought entry to the Federal Home Loan Bank system due to its low cost of funds and other advantages. NAR submitted a comment letter to the FHFA in response to its request for information on expanding membership to the FHLB system.
NAR’s position in the letter maintains existing policy that:
- New members should a be admitted
- So long as they and their parent company meet safety and soundness standards tailored to their business model, and
- They and their parent company meet a test for their support of the housing market.
- Furthermore, this test should be on-going and it should be applied to current FHLB members