Federal Home Loan Bank Board
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Board overview | |
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Formed | July 22, 1932 |
Dissolved | October 8, 1989 |
Superseding agencies |
The Federal Home Loan Bank Board (FHLBB) was a U.S. board created by the Federal Home Loan Bank Act in 1932 that governed the Federal Home Loan Banks (FHLB or FHLBanks), also created by the act; the Federal Savings and Loan Insurance Corporation (FSLIC); and nationally-chartered thrifts.[1] It was abolished and superseded by the Federal Housing Finance Board and the Office of Thrift Supervision in 1989 due to the savings and loan crisis of the 1980s, as Federal Home Loan Banks gave favorable lending to the thrifts it regulated, leading to regulatory capture.[1]
Activities
Looking to create a secondary mortgage market dedicated to buying loans from their constituent thrifts, the FHLBanks and board successfully lobbied for the creation of Freddie Mac, instead of an expanded Fannie Mae (which was limited to FHA insured loans), to be owned and controlled by the FHLBanks and the Federal Home Loan Bank Board and which would buy and sell loans from thrifts only.[1]
Organizational history
The FHLBB was established as an independent agency by the
FHLBB was abolished and its functions and components assigned to the
This redesignated FHLBB was abolished effective October 8, 1989, by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA).[3] The Office of Thrift Supervision would regulate the thrift industry, while the Federal Housing Finance Board would manage the federal home loan banks.[4]
See also
References
- ^ LCCN 2018943787.
- ^ "Records of the Federal Home Loan Bank Board [FHLBB]". National Archives. 2016-08-15. Retrieved 2017-10-24.
- ^ Financial Institutions Reform, Recovery, and Enforcement Act of 1989, §701
- ^ Federal Housing Finance Board: Actions Needed to Improve Regulatory Oversight. Government Accountability Office. 18 September 1998. p. 18.