Federal Home Loan Banks' Mission Activities Act

Key Points

• The bill would dramatically increase the amount Federal Home Loan Banks must spend on affordable housing and community development — from 10% to 30% of net income, with a minimum floor of $200 million per year across all banks.
• Credit unions and community development financial institutions (CDFIs) would be added to the definition of 'community financial institutions,' making it easier for them to access Federal Home Loan Bank resources for lending in underserved areas.
• Executive compensation at Federal Home Loan Banks would be tied to mission achievements — like how much they invest in affordable housing and community lending — rather than just financial performance.
• After a declared disaster, the bill allows empty affordable rental units to be temporarily leased to displaced families regardless of income, removing normal income-targeting rules during emergencies.
• The Federal Housing Finance Agency Director would be required to report annually to Congress on collateral pledged to the banks, adding a new layer of transparency to the system.