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Changes to the federal home loan bank system since the Great Recession
Thesis   Open access

Changes to the federal home loan bank system since the Great Recession

John C. Simone
Master of Science (M.S.), Drexel University
Jun 2015
DOI:
https://doi.org/10.17918/etd-6564
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Abstract

United States. Federal Home Loan Bank System--Rules and practice Federal home loan banks--United States Public Policy
The Federal Home Loan Bank (FHLB) System underwent changes following the recent financial crisis known as the Great Recession (2007-2009). Specifically, the FHLB System has been lending more to insurance companies, has become more involved in its mortgage partnership finance (MPF) programs, will see an unprecedented merger between two Federal Home Loan Banks (FHLBanks), and could potentially realize a major overhaul to its membership requirements. Its membership requirements changes could result in path dependency with increasing returns for the FHLB System. This paper will focus on these occurring and potential changes. These observances allude to the fact that the customer bases, products offered, and structure of the FHLB System could have shifted since the beginning of, or will shift as a result of, the Great Recession. With an entity as large as the FHLB System, the risks posed by these changes could be systemic.

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