Federal Home Loan Banks’ Mission Implementation Act

Bill: 117-hr-3323
Sponsor: Rep. Torres, Ritchie [D-NY-15]
Introduced: 2021-05-18 in the House
Policy area: Finance and Financial Sector
Subjects: Cardiovascular and respiratory health
Child care and development
Community life and organization
Correctional facilities and imprisonment
Economic development
Emergency medical services and trauma care
Government corporations and government-sponsored enterprises
Government lending and loan guarantees
Housing and community development funding
Housing finance and home ownership
Housing supply and affordability
Infectious and parasitic diseases
Infrastructure development
Low- and moderate-income housing
Rural conditions and development
Securities
Small business

Summary:
action_date: 2021-05-18
text: 

Federal Home Loan Banks' Mission Implementation Act 

 
This bill generally expands the ability of Federal Home Loan Banks (FHLBs) to provide advances and grants for activities related to small businesses, affordable housing, and community development. The 11 regional FHLBs serve as government-sponsored enterprises to support mortgage lending and related community investment through advances to member financial institutions. These advances are secured by assets such as mortgages and other loans. 
 
Specifically, the bill allows FHLBs to provide advances that are secured by (1) loans guaranteed by the Small Business Administration, and (2) certain loans made in response to the economic impact of the COVID-19 pandemic and guaranteed or insured by the federal government. 
 
The bill also expands the availability of advances to certain community development financial institutions and credit unions. It also gives the Federal Housing Finance Agency discretion in setting the average asset maximum for certain community financial institutions to qualify for an advance. However, this maximum must not be more than $10 billion. Currently, a community financial institution must have less than $1 billion in average total assets to qualify. 
 
Furthermore, the bill exempts from taxation for two years after the conclusion of the COVID-19 emergency period certain municipal bonds guaranteed by an FHLB. 
 
The bill also increases the percentage of earnings FHLBs must annually contribute to the Affordable Housing Program and sets aside a specified percentage to benefit tribes under this program.


Legislative actions:
action_date: 2021-05-18
text: Referred to the Committee on Financial Services, and in addition to the Committees on Ways and Means, and Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2021-05-18
text: Referred to the Committee on Financial Services, and in addition to the Committees on Ways and Means, and Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2021-05-18
text: Referred to the Committee on Financial Services, and in addition to the Committees on Ways and Means, and Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2021-05-18
text: Introduced in House
action_date: 2021-05-18
text: Introduced in House