Skip to main content

FHFA Terminates Cease and Desist Order on FHLBank

NationalMortgageProfessional.com
Apr 18, 2012

The Federal Housing Finance Agency (FHFA) has terminated all remaining provisions of the consent cease and desist order applicable to the Federal Home Loan Bank of Chicago (FHLBank). The order was terminated because of improvements in the FHLBank’s financial condition and capital position, resolution of risk management concerns, and consideration of specific commitments and assurances made by the FHLBank’s board of directors to the FHFA. In particular, the board has committed to limiting dividends and to maintaining retained earnings at least at the level of the previous year-end. The FHLBank has also committed to reduce excess stock so long as certain financial thresholds are maintained. “The Chicago FHLBank’s improvements in earnings, capitalization, and risk management coupled with its conversion to a new capital structure represent significant achievements in the bank’s recovery,” said FHFA Acting Director Edward J. DeMarco. “The bank has satisfied the requirements of the order and has committed to focus its business activities on advances to members.” The order was put in place on Oct. 10, 2007, by the Federal Housing Finance Board, a predecessor agency to FHFA. Among other things, the order required improvements to risk management policies and practices at the FHLBank of Chicago and prohibited the FHLBank from buying back stock of its members and former members or paying dividends without FHFA’s approval. The FHLBank previously satisfied certain provisions of the order by submitting new market risk management policies and successfully completing the capital stock conversion mandated by the Gramm-Leach-Bliley Act on Jan. 1, 2012.
Published
Apr 18, 2012
Chopra: Nonbanks, Mortgage Servicers May Also Pose Systemic Risk

CFPB director tells Consumer Bankers Association conference such a failure could lead to 'chaos.'

FHFA Announces Enhanced Mortgage Payment Deferral Policy 

Will allow GSE's borrowers facing financial hardship to defer up to six months of mortgage payments. 

MBA: Proposed Rule Would Stifle Securitizations

In letter to SEC, MBA says proposed rule on conflicts of interest is overly broad.

Fidelity National Financial To Pay N.Y. $3.5M, End ‘No-Poach’ Deals

N.Y. attorney general says such deals illegally stifle competition and reduce wages.

A License Renewal Program That Works

Your renewal season will be here before you know it. Do you have a program in place?

Housing Industry Groups Raise Concerns About BABA

24 organizations send letter to Biden Administration saying act could negatively affect development of affordable housing.