Federal Home Loan Bank (FHLB)
The Federal Home Loan Banks (FHLBanks) are a system of regional banks that provide financial services to members such as thrift institutions, credit unions, and commercial banks. FHLBank membership is limited to certain types of banking or finance-related entities and their affiliates. The purpose of the FHLBanks is to increase access to mortgage lending in their communities by providing liquidity for member institutions’ loan portfolios, including mortgages and community investments. They also make advances on behalf of members when they need short-term funding support due to changes in market conditions or other circumstances.
Each bank serves an assigned region within the United States: there are twelve total throughout the country with each having its own board of directors composed mainly from representatives appointed by member institution shareholders who reside within the district served by that particular bank. The boards manage day-to-day operations at each respective bank while being supervised overall by an independent Board Of Directors made up mostly from outside individuals appointed directly through Presidential appointment with Senate confirmation; this body oversees all twelve branches nationally ensuring consistency among them regarding rules/regulations set forth under federal law pertaining towards home loan banking activities generally speaking across America .
Each FHBL branch provides a wide range of products & services tailored specifically towards helping facilitate affordable housing opportunities nationwide via various methods like issuing long term secured debt securities known as “Consolidated Obligations” which help fund mortgages issued through local lenders/banks then repackaged into larger bundles subsequently sold off onto global markets where investors can purchase these bonds thus helping keep interest rates low since more money coming into those specific markets means healthier competition levels between buyers resulting increased demand thus lower prices needed attract buyers alike—allowing borrowers easier access better terms on loans than otherwise available elsewhere without assistance given herefrom..
