FR 2021-04119

The recent notice published by the Federal Housing Finance Agency (FHFA) involves a regulatory review concerning the Federal Home Loan Bank members' community support activities. The primary aim of this document, as released in the Federal Register, is to inform the public about the opportunity to submit feedback regarding the community support performance of these financial members. This is a part of FHFA's broader guidelines to maintain standards that ensure these banks are contributing positively to their communities.

General Summary

The document outlines FHFA’s intention to review all relevant Federal Home Loan Bank members during 2021. This review focuses on compliance with community support regulations, which include evaluating members' performance under the Community Reinvestment Act (CRA) and their record in providing loans to first-time homebuyers. The notice invites public comments on these performances and sets deadlines for submissions: public comments are due by March 31, 2021, while the member banks must submit their Community Support Statements by October 29, 2021. The communication channels for these submissions include email and fax.

Significant Issues and Concerns

The document is conveyed in a manner laden with legal references and regulatory jargon that might not be easily understood by individuals without a background in law or finance. It would benefit from a more straightforward explanation or references that clarify the involved U.S. Code and CFR sections. Additionally, while it invites public comment, it does not provide concrete information on how this feedback will be integrated into the evaluation process, leaving stakeholders uncertain about the impact of their comments.

Another concern is the lack of detailed guidance on what criteria should guide the public in evaluating community support performance. This could lead to inconsistent feedback that might not effectively aid the review process. The notice also omits any discussion of budgetary considerations, which could be relevant for assessing the economic implications of these regulations for the banks involved.

Broad Impact on the Public

For the general public, this document reflects an opportunity to engage in the assessment of community support behaviors of local banks. By commenting on bank performance, citizens can influence and potentially lead to improvements in how these members serve their communities, especially concerning housing finances and first-time homebuyer support.

Impact on Specific Stakeholders

For the Federal Home Loan Banks, this review process emphasizes accountability and could lead to enhanced service delivery in line with federal community support requirements. Positive reviews could strengthen their reputation and trustworthiness among the public. Conversely, banks not meeting the required standards might face challenges in accessing long-term financial advances, which could impact their operational capabilities.

Community organizations and housing advocates have a vested interest in providing feedback during this review. Their comments could help shape FHFA's understanding and oversight of how well these banks are meeting community needs. However, without clear guidance on comment criteria, there might be concerns about the effectiveness of their input in influencing actual outcomes.

Overall, while the intentions behind the document are aligned with protecting and enhancing community welfare, improvements in communication clarity, and stakeholder engagement could potentiate its efficacy.