What does Preamble of Federal Home Loan Banks' Mission Activities Act do?

This bill, formally titled 'A BILL To reaffirm and improve the participation of members of the Federal Home Loan Bank System...', aims to enhance the Federal Home Loan Bank System's role in addressing community financing needs. The bill seeks to improve the ability of community development financial institutions and credit unions to meet community economic development financing needs. It intends to align executive compensation with mission achievements within the Federal Home Loan Bank System.

What does SHORT TITLE. of Federal Home Loan Banks' Mission Activities Act do?

This bill is formally titled the Federal Home Loan Banks’ Mission Activities Act.

What does PURPOSE. of Federal Home Loan Banks' Mission Activities Act do?

This Act aims to improve the participation of Federal Home Loan Bank System members in financing various needs. It seeks to expand the Federal Home Loan Banks' ability to support housing, small business, agricultural, and economic development activities of their members. The Act clarifies that the Federal Home Loan Bank Act permits a range of activities, including grants, subsidized financing, advances, and credit enhancement. It intends to simplify executive compensation and align it with mission achievements.

What does ADDING CREDIT UNIONS AND COMMUNITY DEVELOPMENT FINANCIAL of Federal Home Loan Banks' Mission Activities Act do?

This section amends Section 2(10) of the Federal Home Loan Bank Act. It modifies the definition of 'community financial institutions' to include credit unions and community development financial institutions (CDFIs). The revised definition includes institutions with deposits insured under the Federal Deposit Insurance Act or the Federal Credit Union Act, or that qualify as insured depository institutions. These institutions must have less than $1,000,000,000 in average total assets over the three years preceding the transaction date. Alternatively, the institution must be certified as a CDFI by the Secretary of the Treasury.

What does AFFORDABLE HOUSING PROGRAM. of Federal Home Loan Banks' Mission Activities Act do?

This section amends Section 10 of the Federal Home Loan Bank Act to establish an affordable housing program. Each Federal Home Loan Bank shall establish a program to finance long-term, low- or moderate-income housing through subsidized advances or grants. The Director, rather than the Board, is responsible for regulating the program. In 2025 and subsequent years, Banks may allocate up to 15 percent of net income to non-competitive grants, subsidized loans, or investments for affordable housing or community economic needs. Following a disaster declaration, the Director may temporarily allow vacant rental project units to be leased to displaced households regardless of income and suspend other requirements to facilitate recovery. The program can provide assistance to displaced households and support recovery efforts following declared disasters.

What does COMPENSATION OF EXECUTIVE OFFICERS. of Federal Home Loan Banks' Mission Activities Act do?

This section amends Section 7 of the Federal Home Loan Bank Act. The subsection heading regarding withholding of compensation is revised to 'Compensation of Executive Officers'. The Director is given authority to establish compensation for executive officers of Banks. The Director must establish compensation that is reasonable and comparable to compensation at regional Federal Reserve Banks or similar institutions. In determining compensation, the Director must consider the level of mission investments, including percentages of member institutions providing various community investments and advances. The Director may pay higher compensation if mission goals are achieved.

What does REPORTING ON COLLATERAL. of Federal Home Loan Banks' Mission Activities Act do?

This section amends Section 10 of the Federal Home Loan Bank Act. The Director is required to submit an annual report to specified congressional committees. The report must detail collateral pledged to the Banks. The report will include an analysis of collateral by type and by Bank district.

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Federal Home Loan Banks' Mission Activities Act

Last updated: 4/10/2025 · Introduced: 4/10/2025

Author: Catherine Cortez Masto (D-NV)

TL;DR (AI)

This bill expands the definition of 'community financial institutions' to include credit unions and community development financial institutions (CDFIs) with assets under $1 billion or those certified as CDFIs.
It establishes an affordable housing program allowing Federal Home Loan Banks to allocate up to 15% of net income to grants, subsidized loans, or investments for affordable housing and community economic needs, with disaster relief provisions.
The bill requires the Director to regulate executive compensation for Federal Home Loan Bank officers, aligning it with mission achievements and considering levels of community investments.

119th Congressin committeeOfficial page

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Includes provisions on preamble, short title., and 5 more.

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