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 (FSLIC); and nationally-chartered
thrifts.
It was abolished and superseded by the
Federal Housing Finance Board 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 loans), 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.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 (FIRREA). 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 ...
would regulate the thrift industry, while the Federal Housing Finance Board would manage the federal home loan banks.
See also
* List of financial regulatory authorities by jurisdiction
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