The Federal Housing Finance Agency (FHFA) has announced an adjustment to the cap on average total assets to determine if a Federal Home Loan Bank member qualifies as a "community financial institution" (CFI). This cap has been set at $1.5 billion, reflecting a 2.7% increase based on changes in the Consumer Price Index for all urban consumers (CPI-U) from November 2023 to November 2024. This adjustment, effective from January 1, 2025, allows CFI status to be determined using unadjusted CPI-U data, as it is less prone to revisions than adjusted data.
Simple Explanation
The Federal Housing Finance Agency has decided that a special kind of bank, called a "community financial institution," can have up to $1.5 billion in total assets, which is a little more than before because prices have gone up. This change starts on January 1, 2025.