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Nearly a great century before, Congress created the Federal Financial Banking system (FHLBs) to advertise home ownership and gives liquidity so you’re able to thrifts (coupons and you can financing) and you will insurance companies you to mainly offered mortgages at the time. The present financial system are drastically additional: Thrifts is actually just banks; mortgage lending comes from within this and you can outside the bank system; and you may securitization is amongst the driving force to own exchangeability from the casing funds industries. During the white of those systemic changes, it’s time to reevaluate the point and mission of your FHLBs. Their regulator, the fresh new Federal Houses Fund Agency (FHFA), has introduced a thorough feedback.
The latest Brookings Institution’s Center on Control and you can Places, Boston University’s Writeup on Banking & Monetary Rules, and Boston College or university School regarding Law co-hosted an online forum to talk about and you will debate the FHLB program is actually performing, what the mission might be, and you will exactly what reforms, or no, will likely be undertaken.
