Summary: Critics argue that the federal home loan banks are not doing enough to address the housing crisis, despite generating $725 million last year for affordable housing. The 11 banks resist efforts to increase their contribution to the Affordable Housing Program from 10% to 20% of net income, claiming it could jeopardize their core mission of providing financial system liquidity. Treasury Secretary Janet Yellen and other officials are pushing for the increase, emphasizing the need for greater investment in affordable housing amid a national shortage and high mortgage rates. The banks suggest that instead of raising the contribution, regulators should simplify access to existing funds for smaller banks and community financial institutions.
Federal home loan banks push back against increases to affordable housing grants
