Washington, D.C. – In response to specific and repeated requests from U.S. Senator Catherine Cortez Masto (D-Nev.), the Federal Housing Finance Agency (FHFA) released a comprehensive report calling for mission-focused reform of the Federal Home Loan Banks (FHLBank). Senator Cortez Masto has been the leading voice drawing attention to the FHLBanks’ failure to provide adequate support for affordable housing and economic development, especially in light of their role in the collapse of Silicon Valley Bank and Signature Bank.
The Federal Home Loan Bank system is a taxpayer-subsidized system that enjoys benefits no other private bank has access to. But they only have access to these benefits because of their federally-mandated mission to support affordable housing and economic development. Today’s report urges Congress to pass provisions of Cortez Masto’s legislation to double FHLBank investment in affordable housing and allow more community development financial institutions to become FHLBank members. The report also calls on the FHLBanks to invest more in tribal and rural communities, do more to support community development, and improve accountability for FHLBank leadership. All of these are direct requests of Senator Cortez Masto.
“I’m glad the administration is prioritizing my recommendations to reform the Federal Home Loan Bank system to ensure they’re helping us lower housing costs for Nevadans and for families across the country,” said Senator Cortez Masto. “For years I’ve pushed the Federal Home Loan Bank system to do more to address the housing crisis and invest in local communities. Federal Home Loan Banks were created to support affordable housing and economic development, and I’ll keep working with both the FHFA and my colleagues in Congress to ensure that they’re delivering for American families.”
Senator Cortez Masto has been a leader in the fight to lower housing costs and keep Nevadans in their homes. In addition to reforming the FHLBank system as a whole, Cortez Masto helped create a first-of-its-kind targeted fund to deliver $4.8 million to ensure Nevada gets its fair share of FHLBank affordable housing investments. She’s leading the Affordable Housing Bond Enhancement Act and the HOME Reauthorization Act to help more families afford homes. She is also a sponsor of the Affordable Housing Credit Improvement Act and the Neighborhood Homes Investment Act to help build more affordable housing across the country.