2024 Impact Report: FHLBanks Strengthens Housing Affordability
Overview of the 2024 Impact Report
WASHINGTON – The Federal Home Loan Banks (FHLBanks), which function as member-owned cooperatives, have recently made headlines with the release of their impactful 2024 report. This document sheds light on their unwavering commitment to providing liquidity and support for housing affordability and community development throughout the country. In a remarkable year, the 11 regional FHLBanks concluded 2024 with over $737 billion in outstanding advances, approximately $220 billion in letters of credit, and around $70 billion in mortgage loans held. The FHLBanks also set a new benchmark by committing more than $1.2 billion to various housing programs and voluntary initiatives. One notable highlight was the impact of the Affordable Housing Program, which supported projects with an estimated $8.9 billion in total development costs during the year, emphasizing the critical role of the FHLBanks in enhancing housing supply and expanding economic opportunities.
Ensuring Financial Stability
Throughout 2024, the efforts of the FHLBanks showcased their dedication to providing solid liquidity to about 6,500 financial institution members. They focused on facilitating safe and affordable housing across diverse settings—urban, suburban, and rural—effectively transforming available capital into meaningful community impact. Ryan Donovan, president and CEO of the Council of Federal Home Loan Banks, highlighted this mission, stating, “Our work reflects our deep-rooted commitment to expanding opportunity through responsible funding and innovative partnerships, ensuring that when local financial institutions thrive, so do the communities surrounding them.”
Key Achievements of 2024
The following key achievements accentuate the FHLBanks' efforts in 2024:
- $737 billion in advances outstanding at year-end, securing an ongoing flow of affordable credit, particularly crucial during economic uncertainties.
- $220 billion in outstanding letters of credit, bolstering members in attracting municipal deposits, and thus maintaining local funds within communities.
- $70 billion in mortgage loans held, with nearly $15 billion in new mortgage loans acquired in 2024, where 28% of these loans assisted low-income households.
- $752 million expended from the Affordable Housing Program (AHP), facilitating the creation or preservation of over 26,000 housing units, with a majority being multifamily developments.
- $528 million contributed voluntarily for housing and economic development initiatives, including down payment assistance and disaster recovery efforts.
- Support for over 14,000 first-time homeowners through AHP grants.
- $9.2 billion in Community Investment Program (CIP) advances designated for housing, preserving over 12,500 jobs.
Commitment to Affordability and Growth
As market conditions remain challenging, the FHLBanks are steadfast in their commitment to addressing ongoing affordability issues. They ensure that local lenders are equipped with the necessary capital and tools to effectively serve their communities. This dedication is critical in navigating the evolving landscape of the housing market.
About the Federal Home Loan Banks
The Federal Home Loan Banks comprise 11 regional entities that provide essential lendable funds to a wide range of financial institutions, including community banks, credit unions, and insurance companies. Owned cooperatively by their member institutions, the FHLBanks play a crucial role in ensuring a steady supply of funds for U.S. lenders to address local needs involving housing, employment, and economic development. The Council of FHLBanks represents the interests of all 11 Banks, amplifying their collective impact across the nation.
CONTACT INFORMATION
Council of FHLBanksPeter E. Garuccio
202-955-0002 ext. 14
pgaruccio@cfhlb.org
Frequently Asked Questions
What is the purpose of the 2024 Impact Report?
The report outlines the Federal Home Loan Banks' achievements, emphasizing their role in housing affordability and economic development.
How much funding did the FHLBanks commit in 2024?
The FHLBanks committed more than $1.2 billion to various housing programs and initiatives in 2024.
Who are the members of the FHLBanks?
Members include financial institutions such as community banks, credit unions, and insurance companies across the United States.
What impact did the Affordable Housing Program have in 2024?
The AHP supported projects that represented an estimated $8.9 billion in total development costs, creating over 26,000 housing units.
How can one find more information about the FHLBanks?
Further information can be obtained through their official channels and resources shared in the Impact Report.
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