FHFA releases report highlighting FHLBanks activities and performance – theMReport.com

In a context of national inflation and economic uncertainty, the The Federal Housing Finance Agency (FHFA) released its annual report on the social housing and community development activities of the Federal Home Loan Banks (FHLBanks).

The report highlights the activities and performance of FHLBanks in 2021 through the Affordable Housing Program (AHP), the Community Investment Program (CIP) and the Community Investment Cash Advance Program (CICA). The report also covers the membership of Community Development Financial Institutions (CDFIs) in the FHLBank system, the affordable housing objectives of the FHLBanks and their purchases of Member Owned Assets (AMAs).

FHLBanks provide loans – called advances – or grants to their members or housing associates under these programs. These funds are then used to help very low, low and middle income households and communities.

“Federal Home Loan Banks provided more than $2.7 billion in 2021 for targeted economic development and housing advances,” said Federal Housing Finance Agency Director Sandra L. Thompson. “As the FHFA begins its comprehensive review of the Federal Home Lending System, we recognize its long-term importance in providing liquidity to the housing finance market and funding community investment projects.”

Key points to remember:

  • The FHLBanks gave approximately $352.4 million in total contributions to the AHP in 2021, which assisted more than 32,000 low- and middle-income households, of which more than 17,000 were very low-income households.
  • FHLBanks funded approximately $1.7 billion in targeted housing and economic development advances through CIP in 2021. These CIP housing advances assisted approximately 8,000 households in 2021.
  • In 2021, targeted advances in economic development from the CISC Program amounted to approximately $1 billion.
  • Ten FHLBanks purchased AMA mortgages in 2021, and each met the community AMA user and mortgage purchase targets.

​FHLBanks also supports financing for low-income housing and community development to non-custodial CDFI members. CDFIs also help underserved communities by promoting economic investment and affordable housing opportunities, and providing community development financial services.

To read the full release, including more details and methodology, Click here.

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