The
Federal Housing Finance Board (
FHFB) is an
independent agency of the United States governmentIndependent agencies of the United States federal government are those agencies that exist outside of the federal executive departments...
, created by the
Financial Institutions Reform, Recovery and Enforcement Act of 1989The Financial Institutions Reform Recovery and Enforcement Act of 1989 is a United States federal law enacted in the wake of the savings and loan crisis of the 1980s. It established the Resolution Trust Corporation to close hundreds of insolvent thrifts and provided funds to pay out insurance...
or FIRREA (pronounced "fur-EE-ah"). In the aftermath of the
savings and loan crisisThe savings and loan crisis of the 1980s and 1990s was the failure of 745 savings and loan associations . A Savings and Loan is a financial institution in the United States that accepts savings deposits and makes mortgage, car and other personal loans to individual members...
, the FHFB took over supervision of the Federal Home Loan Banks from the now-defunct
Federal Home Loan Bank Board ("FHLBB"). (The
Office of Thrift SupervisionThe Office of Thrift Supervision , an agency of the United States Department of the Treasury, is the primary regulator of federal savings associations . Federal savings associations include both federal savings banks and federal savings and loans...
took over most other functions of the FHLBB.) On July 30, 2008, the
Housing and Economic Recovery Act of 2008The Housing and Economic Recovery Act of 2008 designed primarily to address the subprime mortgage crisis, was passed by the United States Congress on July 24, 2008 and signed by President George W. Bush on July 30, 2008...
combined the FHFB and the
Office of Federal Housing Enterprise OversightThe Office of Federal Housing Enterprise Oversight was an agency within the Department of Housing and Urban Development. It was charged with ensuring the capital adequacy and financial safety and soundness of two government sponsored enterprises -- the Federal National Mortgage Association and...
(OFHEO) to form the new
Federal Housing Finance AgencyThe Federal Housing Finance Agency is an independent federal agency created as the successor regulatory agency resulting from the statutory merger of the Federal Housing Finance Board and the Office of Federal Housing Enterprise Oversight , absorbing the powers and regulatory authority of both...
(FHFA), and will cease its existence one year later, on July 30, 2009.
The FHFB provided regulatory oversight of the nation's
Federal Home Loan BanksThe Federal Home Loan Banks provide stable, on-demand, low-cost funding to American financial institutions for home mortgage loans, small business, rural, agricultural, and economic development lending. With their members, the FHLBank System represents the largest collective source of home mortgage...
(FHLBs).
The
Federal Housing Finance Board (
FHFB) is an
independent agency of the United States governmentIndependent agencies of the United States federal government are those agencies that exist outside of the federal executive departments...
, created by the
Financial Institutions Reform, Recovery and Enforcement Act of 1989The Financial Institutions Reform Recovery and Enforcement Act of 1989 is a United States federal law enacted in the wake of the savings and loan crisis of the 1980s. It established the Resolution Trust Corporation to close hundreds of insolvent thrifts and provided funds to pay out insurance...
or FIRREA (pronounced "fur-EE-ah"). In the aftermath of the
savings and loan crisisThe savings and loan crisis of the 1980s and 1990s was the failure of 745 savings and loan associations . A Savings and Loan is a financial institution in the United States that accepts savings deposits and makes mortgage, car and other personal loans to individual members...
, the FHFB took over supervision of the Federal Home Loan Banks from the now-defunct
Federal Home Loan Bank Board ("FHLBB"). (The
Office of Thrift SupervisionThe Office of Thrift Supervision , an agency of the United States Department of the Treasury, is the primary regulator of federal savings associations . Federal savings associations include both federal savings banks and federal savings and loans...
took over most other functions of the FHLBB.) On July 30, 2008, the
Housing and Economic Recovery Act of 2008The Housing and Economic Recovery Act of 2008 designed primarily to address the subprime mortgage crisis, was passed by the United States Congress on July 24, 2008 and signed by President George W. Bush on July 30, 2008...
combined the FHFB and the
Office of Federal Housing Enterprise OversightThe Office of Federal Housing Enterprise Oversight was an agency within the Department of Housing and Urban Development. It was charged with ensuring the capital adequacy and financial safety and soundness of two government sponsored enterprises -- the Federal National Mortgage Association and...
(OFHEO) to form the new
Federal Housing Finance AgencyThe Federal Housing Finance Agency is an independent federal agency created as the successor regulatory agency resulting from the statutory merger of the Federal Housing Finance Board and the Office of Federal Housing Enterprise Oversight , absorbing the powers and regulatory authority of both...
(FHFA), and will cease its existence one year later, on July 30, 2009.
The FHFB provided regulatory oversight of the nation's
Federal Home Loan BanksThe Federal Home Loan Banks provide stable, on-demand, low-cost funding to American financial institutions for home mortgage loans, small business, rural, agricultural, and economic development lending. With their members, the FHLBank System represents the largest collective source of home mortgage...
(FHLBs). The twelve regional FHLBs are privately-held government sponsored enterprises that ensure the supply of funds to local lenders that, in turn, finance loans for home mortgages. The FHLBs are located in Atlanta,
BostonBoston is the capital and largest city of the Commonwealth of Massachusetts, and is one of the oldest cities in the United States. The largest city in New England, Boston is considered the economic and cultural center of the region and is sometimes regarded as the unofficial "Capital of New England"...
,
ChicagoChicago is the largest city in the U.S. state of Illinois, and with more than 2.8 million people, the 3rd largest city in the United States...
, Cincinnati, Dallas, Des Moines, Indianapolis,
New YorkNew York is the most populous city in the United States, and the center of the New York metropolitan area, which is among the most populous urban areas in the world. A leading global city, New York exerts a powerful influence over worldwide commerce, finance, culture, fashion and entertainment...
, Pittsburgh, San Francisco, Seattle, and Topeka. Each bank serves a separate, non-overlapping district within the United States.
The FHFB was headquartered in
Washington, D.C.Washington, D.C. , formally the District of Columbia and commonly referred to as Washington, the District, or simply D.C., is the capital of the United States, founded on July 16, 1790...
and led by a five-member board. Four board members were appointed by the
PresidentThe President of the United States is the head of state and head of government of the United States and is the highest political official in the United States by influence and recognition...
for seven-year terms, and the fifth member is either the
Secretary of Housing and Urban DevelopmentThe United States Secretary of Housing and Urban Development is the head of the United States Department of Housing and Urban Development, concerned with urban housing matters. The Secretary is a member of the President's Cabinet....
or the Secretary's designee.
The FHFB was entirely funded by fees assessed to Federal Home Bank Loans, and did not directly receive taxpayer funds.