The Independent Community Bankers of America (ICBA) issued a statement today regarding the Federal Home Loan Bank of New York's recent decision to impose lending restrictions on its member banks.
"ICBA and the nation’s community banks have repeatedly advised the Federal Housing Finance Agency not to disrupt the Federal Home Loan Bank System as an important source of liquidity for community banks. Unfortunately, a recent Federal Home Loan Bank of New York message to its member banks that it will impose additional qualitative and quantitative information reporting requirements to align with the FHFA’s more restrictive approach to lending threatens to restrict access to home loans in local communities nationwide."
In a new comment letter on the FHFA’s review of the FHLBank System, ICBA emphasized that additional requirements should not be imposed on FHLBank advances for members in good standing with eligible collateral. According to ICBA, such measures would reduce mortgage credit availability and community development funding at a critical time.
"The FHLBank system has worked well for over 90 years, providing community banks with the liquidity needed to fund home mortgage lending and community development projects. The FHFA should ensure it does not disrupt the FHLBanks’ ability to remain a healthy and reliable source of funding for its member-owners."
ICBA affirmed its commitment to working with FHFA and other stakeholders to maintain a strong, stable, and reliable funding source through the FHLBank System for community banks and their served communities.
About ICBA:
The Independent Community Bankers of America® aims to create an environment where community banks can thrive. Through advocacy, education, and innovation, ICBA supports America's community banks in fostering economic prosperity by channeling deposits into local neighborhoods.
For more information, visit ICBA’s website at icba.org.