The Federal Home Loan Bank System
The public policy mission of the Federal Home Loan Bank System (the “System”), which was created by Congress in 1932 and consists of the 11 regional Federal Home Loan Banks (the “FHLBanks”) and the OF, is to support residential mortgage lending and related community investment through its member financial institutions. The System fulfills its role in housing finance by providing members with access to reliable, economical funding and technical assistance, and special affordable housing programs. The FHLBanks have been a fundamental part of the nation’s financial system for over eight decades.
The Office of Finance
Located in Reston, VA, a suburb of Washington, D.C., the OF is operated on behalf of the FHLBanks. Its primary function is to issue and service all debt securities for the regional FHLBanks, while obtaining the most cost-effective terms possible given current market conditions. Related activities include the compilation and publication of the combined financial statements, analysis and joint development of new funding opportunities, and educational outreach to inform investors and other interested parties about FHLBank debt products. The OF also provides the FHLBanks with credit and general capital market information/data, and manages the relationship with the credit rating agencies. In addition, the OF administers two tax-exempt government corporations, the Financing Corporation and the Resolution Funding Corporation.
As an agent of the FHLBanks, the OF is a unique organization. While it is the size of a small business, it has access to the resources, and shoulders the responsibilities, of a large corporation. The OF does not have the drivers of a traditional business, such as a P&L or equity value. Rather, its staff and leaders derive their satisfaction from tackling the diverse challenges of serving the FHLBanks, individually and as a System, as well as managing dealer and investor relationships — all while remaining keenly focused on its day-to-day core mission.
The FHLBanks and the OF are government-sponsored enterprises regulated by the Federal Housing Finance Agency.
Capital Markets Intern
June 2018 - August 2018
“FHLB's office of Finance is a great place to learn about capital markets, MMF's, and fixed income products. Everyone is willing to help you learn about the complex lending system. There is time set to teach you about overall market trends affecting their business and the in's and out's of the fixed income market.”