1. They Provide Competitively Priced Financing That Keeps Lending Moving
Federal Home Loan Banks serve as a wholesale source of lendable funds for member institutions, often through advances, which help banks and lenders maintain liquidity and sustain housing and community lending activity across market cycles.
2. They Invest Directly in Communities Through Affordable Housing and Community Development Funding
In addition to funding tools, Federal Home Loan Banks support communities through affordable housing subsidies, community development grants, and other banking services that help member communities grow and prosper. Programs vary by district.
3. It’s Regional, So Your Federal Home Loan Bank Depends on Where Your Project Is Located
The system is structured as 11 regional banks, and each district has its own footprint and program details.
For example, the Federal Home Loan Bank of Atlanta is one of the 11 regional banks in the Federal Home Loan Bank System, serving Alabama, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and the District of Columbia. If your project falls outside that footprint, check your region to see how other Federal Home Loan Banks can assist with your project.
4. Their Members Are the Financial Institutions That Finance Community Housing
Federal Home Loan Banks serve commercial banks, credit unions, insurance companies, savings institutions, and community development financial institutions. These members all play a role in developing affordable, community-focused housing.
5. They Help Banks and Lenders Meet Affordable Housing Mission Compliance Goals Tied to CRA
Federal Home Loan Bank-supported housing and community development activity can help banks and lenders achieve affordable housing mission compliance goals related to the Community Reinvestment Act.
