The Federal Home Loan Bank Board (FHLBB) was a U.S. board created by the Federal Home Loan Bank Act 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 financial institutions to support housing finance and community investment. Overview The FHLBank System was chartered by ...

(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 It was abolished and superseded by the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 List of federal agencies in the United States, United States federal agency under the United States Department of the Treasury, Department of the Treasury that chartered, supervised, and regulated al ...

in 1989 due to the

savings and loan crisis The savings and loan crisis of the 1980s and 1990s (commonly dubbed the S&L crisis) was the failure of approximately a third of the savings and loan associations (S&Ls or thrifts) in the United States between 1986 and 1995. These thrifts were b ...

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 called agency capture) 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 of a minor ...

Activities

Looking to create a secondary mortgage market 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 an American publicly traded, government-sponsored enterprise (GSE), headquartered in Tysons, 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 New ...

(which was limited to

FHA insured loan An FHA insured loan is a government-backed mortgage option designed to help a broader range of Americans—particularly first-time homebuyers—achieve homeownership with more flexible credit, income, and down payment requirements than convention ...

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. Roo ...

was established as an emergency agency under FHLBB supervision by the Home Owners' Loan Act 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 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 u ...

, 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 A ...

, 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 ...

(FIRREA). The

would regulate the thrift industry, while the

would manage the federal home loan banks.

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 agency of the United States government within the executive branch, charged with the preservation and documentation of government and historical records. It is also task ...

{{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

Activities

Organizational history

See also

References

External links