The Federal Home Loan Bank Board (FHLBB) was a board created in 1932 that governed the

Federal Home Loan Banks The Federal Home Loan Banks (FHLBanks, or FHLBank System) are 11 U.S. government-sponsored banks that provide liquidity to the members of financial institutions to support housing finance and community investment. Overview The FHLBank System was ...

(FHLB or FHLBanks) also created by the act, the

Federal Savings and Loan Insurance Corporation The Federal Savings and Loan Insurance Corporation (FSLIC) was an institution that administered deposit insurance for savings and loan institutions in the United States. History Establishment The FSLIC was established by the National Housing Act ...

(FSLIC) and nationally-chartered thrifts. It was abolished and superseded by the

Federal Housing Finance Board The Federal Housing Finance Board (FHFB) was an independent agency of the United States government established in 1989 in the aftermath of the savings and loan crisis to take over management of the Federal Home Loan Banks (FHLBs or FHLBanks) from ...

and the

Office of Thrift Supervision The Office of Thrift Supervision (OTS) was a United States federal agency under the Department of the Treasury that chartered, supervised, and regulated all federally chartered and state-chartered savings banks and savings and loans associatio ...

in 1989 due to the savings and loan crisis of the 1980s, as Federal Home Loan Banks gave favorable lending to the thrifts it regulated leading to

regulatory capture In politics, regulatory capture (also agency capture and client politics) is a form of corruption of authority that occurs when a political entity, policymaker, or regulator is co-opted to serve the commercial, ideological, or political interests ...

Activities

Looking to create a

secondary mortgage market The secondary mortgage market is the market for the sale of securities or bonds collateralized by the value of mortgage loans. A mortgage lender, commercial bank, or specialized firm will group together many loans (from the "primary mortgage mar ...

dedicated to buying loans from their constituent thrifts, the FHLBanks and board successfully lobbied for the creation of

Freddie Mac The Federal Home Loan Mortgage Corporation (FHLMC), commonly known as Freddie Mac, is a publicly traded, government-sponsored enterprise (GSE), headquartered in Tysons Corner, Virginia.Fannie Mae The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a United States government-sponsored enterprise (GSE) and, since 1968, a publicly traded company. Founded in 1938 during the Great Depression as part of the N ...

(which was limited to

FHA insured loan An FHA insured loan is a US Federal Housing Administration mortgage insurance backed mortgage loan that is provided by an FHA-approved lender. FHA mortgage insurance protects lenders against losses. They have historically allowed lower-income Ame ...

s), to be owned and controlled by the FHLBanks and the Federal Home Loan Bank Board and which would buy and sell loans from thrifts only.

Organizational history

The FHLBB was established as an independent agency by the Federal Home Loan Bank Act, July 22, 1932. The

Home Owners' Loan Corporation The Home Owners' Loan Corporation (HOLC) was a government-sponsored corporation created as part of the New Deal. The corporation was established in 1933 by the Home Owners' Loan Corporation Act under the leadership of President Franklin D. Ro ...

was established as an emergency agency under FHLBB supervision by the

Home Owners' Loan Act The Homeowners Refinancing Act (also known as the Home Owners' Loan Act of 1933 and the Home Owners' Loan Corporation Act) was an Act of Congress of the United States passed as part of Franklin Delano Roosevelt's New Deal during the Great Depres ...

of 1933, June 13, 1933. FHLBB and its components (Federal Home Loan Bank System, Federal Savings and Loan System,

, and Home Owners' Loan Corporation) were made part of newly established

Federal Loan Agency Federal or foederal (archaic) may refer to: Politics General *Federal monarchy, a federation of monarchies *Federation, or ''Federal state'' (federal system), a type of government characterized by both a central (federal) government and states or ...

by Reorganization Plan No. I of 1939, effective July 1, 1939. FHLBB was abolished and its functions and components assigned to the Federal Home Loan Bank Administration (FHLBA) in the newly established

National Housing Agency The United States Department of Housing and Urban Development (HUD) is one of the executive departments of the U.S. federal government. It administers federal housing and urban development laws. It is headed by the Secretary of Housing and Ur ...

, by EO 9070, February 24, 1942. FHLBA was abolished and its functions and components assigned to Home Loan Bank Board (HLBB) in the newly created

Housing and Home Finance Agency The Housing and Home Finance Agency (HHFA) was responsible for the principal housing programs of the United States from 1947 to 1965. It was superseded by the U.S. Department of Housing and Urban Development and preceded by the National Housing ...

, by Reorganization Plan No. 3 of 1947, effective July 27, 1947. HLBB was made an independent agency and redesignated as the FHLBB by the Housing Amendments of 1955 (), August 11, 1955. This redesignated FHLBB was abolished effective October 8, 1989, by the

Financial Institutions Reform, Recovery, and Enforcement Act of 1989 The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), 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 o ...

(FIRREA). The

would regulate the thrift industry, while the

would manage the FHLBanks.

References

External links

Records of the Federal Home Loan Bank Board
from the

National Archives and Records Administration The National Archives and Records Administration (NARA) is an " independent federal agency of the United States government within the executive branch", charged with the preservation and documentation of government and historical records. It ...

{{Authority control Defunct independent agencies of the United States government Government agencies established in 1932 1932 establishments in Washington, D.C. Government agencies disestablished in 1990 1990 disestablishments in Washington, D.C. Housing organizations in the United States