MBA Weighs in with FHFA on FHLB Core Mission Activities

The Mortgage Bankers Association submitted a letter yesterday to the Federal Housing Finance Agency regarding its request for information on Federal Home Loan Bank core mission activities.

MBA’s letter reiterated our longstanding position that FHLB membership should be expanded to independent mortgage banks and real estate investment trusts with a “strong and demonstrable connection to the mission of the FHLBank System.”

The letter also highlights why expanding eligible collateral types and then aligning collateral standards across the FHLBs would also allow the FHLBs to better serve their mission and acknowledges that expanding both FHLB membership and eligible collateral would require certain adjustments to the current system. “[MBA] believes that these steps could be undertaken without jeopardizing the safety and soundness of the system,” the letter said.

MBA also called for harmonizing the acceptance of warehouse lines, which directly support housing finance activities, to all FHLBs and encouraged FHFA to consider expanding types of eligible collateral mortgage servicing rights and mortgage servicing advances.