Collateral Pledged to FHLBanks

Congress established the Federal Home Loan Bank System (System) under the Federal Home Loan Bank Act of 1932 (the Bank Act). The primary business of the Federal Home Loan Banks (FHLBanks) is to make fully secured, low-cost loans, known as advances, to their members.1,2 Consistent with the provisions of the Bank Act, the FHLBanks require their members to pledge collateral in the form of mortgages and other eligible assets to secure their advances and other collateralized products offered by the FHLBanks to their members.3 The Housing and Economic Recovery Act of 2008 (HERA) requires the Federal Housing Finance Agency (FHFA) to submit an annual report to Congress on the collateral pledged to the FHLBanks, including an analysis of collateral by type and by FHLBank district.4 FHFA’s Report on Collateral Pledged to Federal Home Loan Banks provides the required information as well as additional analysis of data on the types and amounts of collateral pledged to the FHLBanks to secure advances and other collateralized products offered by the FHLBanks to their members.