In response to appeals from Cortez Masto, the Federal Housing Finance Agency announces a necessary review of the federal home loan system

August 31, 2022

washington d.c. – Today, U.S. Sen. Cortez Masto (D-Nev.) applauded the announcement by the Federal Housing Finance Agency (FHFA) that it would conduct a review of the Federal Home Loan Bank system, which includes 11 sponsored entities. the regional government who lend to their member financial institutions and insurance companies. The explicit mission of the FHLB system is to support investment in housing and meet the economic development needs of communities. Under the leadership of Sandra Thompson, the FHFA has begun a much needed and long overdue review of this trillion dollar system.

Throughout her tenure in the Senate, Senator Cortez Masto advocated for further investment by the FHLBanks in their mission. She raised the issue of a review of the FHLB system personally and at a audience with director Thompson. Senator Cortez Masto also pointed out that Nevada has been treated unfairly by the system, and she sought Additional investment in Nevada by FHLBank of San Francisco. In a letter this week to Director Thompson, Senator Cortez Masto called for a review of FHLBanks and asked that this review consult with stakeholders and outside experts to ensure that this 90-year-old government-sponsored entity is using its responsible federal funding. She also called for the review to look at how the FHLB system can better support affordable housing, rural and tribal communities, income inequality, infrastructure investments and climate resilience. The letter also urged the director to consider linking executive compensation to mission investments.

“The Federal Home Loan Bank system needs a refresh”, said Senator Cortez Masto. “Throughout my time in the Senate, I have focused on ways to increase investment in housing, small business, community development and infrastructure in Nevada, and it is clear that the entire federal system Home Loan Bank should – and could – do more to meet the investment needs of communities in Nevada and across the country.I am pleased to see Director Thompson’s leadership on this issue, and I applaud this important review for s ensure that the Federal Home Loan Bank fulfills its mission.

Senator Cortez Masto has been a leader on affordable housing and community development issues. She has worked regularly with the Federal Home Loan Bank of San Francisco to increase FHLB-SF funding for affordable housing and community development in Nevada. She secured a commitment to a targeted affordable housing fund for Nevada from the Federal Home Loan Bank of San Francisco. Additionally, Senator Cortez Masto’s support for the US bailout helped provide $800 million in affordable housing funding to the state of Nevada. Its support for federal investment in housing has helped preserve or build more than 17,000 affordable homes in the state over the past five years. She supported legislation that provided housing assistance to more than 81,000 Nevada residents over the past two years. In 2021, she introduced the Federal Home Lending Banks Mission Implementation ActS. 1684, to direct FHLBanks to do more to fulfill their mission of meeting the affordable housing and community economic development needs of the communities they serve.

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Louis R. Hancock