PRIA Logo™
119-s-1439119th CongressWALLET

Federal Home Loan Banks' Mission Activities Act

Sponsored By: Senator Cortez Masto, Catherine [D-NV]

Introduced

Summary

Would expand the Federal Home Loan Banks' role in financing affordable housing and community development. It would broaden the Banks' tools, add more community lenders as members, and tie executive pay to mission goals.

Show full summary
  • Families and renters would gain more support for long-term, low- and moderate-income housing through grants and subsidized advances, with a minimum annual Affordable Housing Program funding of $200 million and a requirement to allocate 30 percent of the prior year's net income to the program starting in 2025.
  • Community financial institutions such as credit unions and certified community development financial institutions would become eligible members under new criteria, including an asset threshold of less than $1 billion in average total assets over the prior 3 years or CDFI certification.
  • Federal Home Loan Banks would be allowed to use grants, subsidized financing, advances, and credit enhancements to support members, would face new executive compensation rules that link pay to mission outcomes and regional benchmarks, and would have to provide an annual collateral report to Congress.

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 0 costs, 1 mixed.

More affordable housing help from Banks

If enacted, each Federal Home Loan Bank would create an Affordable Housing Program to finance long-term low- and moderate-income owner and rental housing. The Program could subsidize interest on advances or provide grants, and member lenders must pass subsidies on to borrowers. Starting in 2025, Banks must put 30% of the prior year's net income toward affordable housing or community development and together must provide at least $200 million each year. After a declared disaster, the Director could allow temporary leasing of Bank-assisted vacant units to displaced households regardless of income.

More Bank membership for small lenders

If enacted, smaller institutions could join Federal Home Loan Banks more easily. Institutions with insured deposits and under $1 billion in average total assets (3-year average) could qualify as community financial institutions for membership. CDFI-certified institutions would also qualify. This could give more small banks, credit unions, and community development lenders access to Bank advances and programs.

Bank executive pay tied to mission

If enacted, the Director would set reasonable compensation rules for Federal Home Loan Bank executives using regional Federal Reserve Banks as a benchmark. The Director must consider mission-investment metrics when setting pay. Pay could exceed regional levels if Banks meet mission targets.

Sponsors & CoSponsors

Sponsor

Cortez Masto, Catherine [D-NV]

NV • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
Back to Legislation