Ryan Donovan, the head of the Council of Federal Home Loan Banks, pushes back against criticisms that the government-sponsored enterprises have strayed from their mission. He outlines what the FHLBs want as part of a reform effort by their regulator.
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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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Great episode. From a rural perspective it can be difficult to make SFR loans that qualify for collateral w FHLB. It is also difficult to participate in secondary market structure on loans in rural markets for a variety of reasons. This could be why you see lack of participation in AHP or even providing SFR collateral outside of big banks and other lending sources who can find volume that qualifies. The FHFA rules are somewhat prohibitive to rural markets where you might not have enough comps to qualify for secondary market structure, or there is more value on larger parcels that discounts the appraisal too much to qualify. Your rural banks continue to serve but these rules aren't helpful in being able to make SFR loans. If you could qualify any CDFI SFR loans for collateral that would help. One note, our FHLB has adjusted the income rules for AHP and that might open the door to get into that depending on the time it takes to manage the program.
-------------------------------------------Original Message:
Sent: 09-18-2024 15:06
From: Rob Blackwell
Subject: [Podcast] How FHLBs See the Battle Over Reform
Ryan Donovan, the head of the Council of Federal Home Loan Banks, pushes back against criticisms that the government-sponsored enterprises have strayed from their mission. He outlines what the FHLBs want as part of a reform effort by their regulator.
------------------------------
Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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