CHLA wants IMBs to be eligible for FHLBank membership

The Community Home Lenders of America (CHLA) is asking the Federal Housing Finance Agency (FHFA) to expand Federal Home Loan Bank System membership to independent mortgage banks as the agency considers eliminating regulations governing new FHLBank business activities. In an Aug. 12 letter addressed to FHFA general counsel Clinton Jones, the trade group supported the agency’s proposal to repeal regulations that govern FHLBank new business activities. CHLA said the regulation contains “overly prescriptive and duplicative requirements” that can limit the FHLBanks’ flexibility. “CHLA supports giving the FHLBanks greater operational flexibility,” the letter explained in calling for guardrails. “However, that flexibility should not result in the expansion of activities that could create unnecessary risk to the System or blur the distinction between the FHLBanks and Fannie Mae/Freddie Mac.” CHLA outlined three priorities for FHFA: maintaining safeguards around significant new FHLBank activities, expanding membership and liquidity access to IMBs, and ensuring continued membership remains tied to ongoing mortgage lending activity. CHLA specifically raised concerns about potential expansion ...