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 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 ...

to take over management of 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 ...

(FHLBs or FHLBanks) from the

Federal Home Loan Bank Board 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 (FHLB or FHLBanks), also created by the act; the Federal Savings and Loan Insurance Corporatio ...

(FHLBB), and was superseded by the Federal Housing Finance Agency (FHFA) in 2008. The FHFB managed the nation's

(FHLBs). The eleven regional FHLBs are privately held

government sponsored enterprise A government-sponsored enterprise (GSE) is a type of financial services corporation created by the United States Congress. Their intended function is to enhance the flow of credit to targeted sectors of the economy, to make those segments of the ...

s that ensure the supply of funds to local lenders that, in turn, finance loans for home mortgages.

Operations

The FHFB was headquartered in

Washington, D.C. Washington, D.C., formally the District of Columbia and commonly known as Washington or D.C., is the capital city and federal district of the United States. The city is on the Potomac River, across from Virginia, and shares land borders with ...

, and led by a five-member board. Four board members were appointed by the

President President most commonly refers to: *President (corporate title) * President (education), a leader of a college or university *President (government title) President may also refer to: Arts and entertainment Film and television *'' Præsident ...

for seven-year terms, and the fifth member was either the Secretary of Housing and Urban Development or the Secretary's designee. The FHFB was entirely funded by fees assessed to Federal Home Bank Loans, and did not directly receive taxpayer funds.

History

The FHFB was established by the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) in the aftermath of the

to take over oversight of the

(FHLBs or FHLBanks) from the

(FHLBB) while 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 ...

(OTS) took over most other functions of the FHLBB including regulation. Due to the

2008 financial crisis The 2008 financial crisis, also known as the global financial crisis (GFC), was a major worldwide financial crisis centered in the United States. The causes of the 2008 crisis included excessive speculation on housing values by both homeowners ...

, the Housing and Economic Recovery Act of 2008 (HERA) replaced the FHFB and the Office of Federal Housing Enterprise Oversight (OFHEO) with the Federal Housing Finance Agency (FHFA). The FHFB's existence ceased on July 30, 2009. As a result of the

late-2000s recession The Great Recession was a period of market decline in economies around the world that occurred from late 2007 to mid-2009.

, section 312 of the Dodd-Frank Wall Street Reform and Consumer Protection Act mandated merger of OTS with the

Office of the Comptroller of the Currency The Office of the Comptroller of the Currency (OCC) is an independent bureau within the United States Department of the Treasury that was established by the National Currency Act of 1863 and serves to corporate charter, charter, bank regulation ...

(OCC), the

Federal Deposit Insurance Corporation The Federal Deposit Insurance Corporation (FDIC) is a State-owned enterprises of the United States, United States government corporation supplying deposit insurance to depositors in American commercial banks and savings banks. The FDIC was cr ...

(FDIC), the

Federal Reserve Board of Governors The Board of Governors of the Federal Reserve System, commonly known as the Federal Reserve Board, is the main governing body of the Federal Reserve System. It is charged with overseeing the Federal Reserve Banks and with helping implement the mo ...

, and the

Consumer Financial Protection Bureau The Consumer Financial Protection Bureau (CFPB) is an independent agency of the United States government responsible for consumer protection in the financial sector. CFPB's jurisdiction includes banks, credit unions, securities firms, Payday lo ...

(CFPB) as of July 21, 2011.

References

External links

Federal Housing Finance Board website
{{authority control Defunct independent agencies of the United States government 1990 establishments in Washington, D.C. Organizations disestablished in 2008 Housing finance agencies of the United States 2008 disestablishments in Washington, D.C.

Operations

History

See also

References

External links