Hearing Entitled: Oversight of the Federal Home Loan Bank System

The GOP Financial Services Subcommittee held a hearing on July 22, 2026, titled "Oversight of the Federal Home Loan Bank System." The hearing focused on the dual roles of the Federal Home Loan Banks (FHLBs) in providing liquidity to member financial institutions and supporting affordable housing through grants. Witnesses discussed the system's history, operations, and recent performance during financial stresses such as the 2023 bank failures. Key procurement-related topics included the Affordable Housing Program (AHP), which requires FHLBs to contribute at least 10% of profits to affordable housing projects, with some banks voluntarily contributing more. The hearing also covered the importance of programs like the Acquired Member Asset (AMA) program and the Mortgage Partnership Finance (MPF) program, which support community banks and housing finance. Challenges were noted regarding membership eligibility, collateral requirements, and the distribution of advances, with calls for reforms to better align the system with its housing mission and to improve access for smaller institutions and Community Development Financial Institutions (CDFIs). Coordination between the FHLBs and the Federal Reserve during times of financial stress was also discussed, with ongoing efforts to improve interoperability and collateral mobility. Several members emphasized the need for legislative action to codify certain programs, increase affordable housing contributions, and ensure the system's safety and soundness while expanding its community impact.