Transcript Board Update A New Beginning

CFED
CDFI Federal Home Loan Bank
Membership Webinar Forum
February 22, 2010
Eldridge Edgecombe
Senior Vice President
Community Investment Group
Discussion Points
I.
Statutory FHLB Membership Requirements
II. Good News
III. Not So Good News
IV. CDFI Membership Objectives
V. FHLB Membership Objectives
VI. The Two Key Issues
VII. Contact Information
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Statutory Membership Requirements
 A CDFI must be duly organized under state
or federal law
 A CDFI must be certified by the U.S.
Department of the Treasury
 A CDFI must originate long-term (first
mortgage) home loans
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Good News
 CDFIs will not be subject to the 10% of
assets rule
 CDFIs will not be required to complete the
Community Support Statements
 Tribal CDFIs are eligible for membership
 Net Asset Test is not absolute
 Earnings measurement revised to allow for
positive income on a rolling 3-year basis
 The self-sufficiency rule has been eliminated
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Not So Good News
 No changes to existing advances and collateral
requirements
 No FHLB CDFI membership goals
 CDFIs will not be classified as Community
Financial Institutions
 No change to the definition of “long-term”
mortgages
 20% Net Asset test is retained
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CDFI Membership Objectives
FHLB Value Proposition:
 Access to reliable and stable source of liquidity
 Direct Access to the Affordable Housing
Program (AHP) grants
 Low-cost borrowing
 Direct access to Letters of Credit
 Annual dividends on capital stock investment
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FHLB Membership Objectives
 Maintaining AAA Rating
 Zero Credit Losses
 Over Collateralized Lending
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The Two Key Issues
 Successfully completing the
membership application
 Collateral, collateral, and more
collateral
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Contact Information
 Any Federal Home Loan Bank
 Federal Housing Finance Agency @
www.fhfa.gov
 Council of Federal Home Loan Banks @
www.fhlbanks.com
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