S. 1439 · Where this bill is now
In committee
Introduced in the Senate, Apr 10, 2025
What this bill does
In plain words · AI-written from the official summaryExpands federal home loan bank programs
The Federal Home Loan Banks are government agencies that help financial institutions make mortgage loans and support community development. This bill would require them to contribute more money each year to affordable housing and community development programs. It would also let small credit unions and certain community development lenders become members of these banks and borrow money for things like small business loans, not just mortgages. The bill also sets rules so that top executives at these banks are paid in a reasonable way.
How it affects you
Small credit unions and community development lenders would gain access to more funding options through the Federal Home Loan Banks. People looking for affordable housing and small business loans could potentially benefit from increased community investment by these institutions, though the summary doesn't specify how directly these changes would affect individual borrowers.
Read the official summary (Introduced in Senate, Apr 10, 2025)
Federal Home Loan Banks' Mission Activities Act
This bill expands the Federal Home Loan Bank (FHLB) program that supports affordable housing, allows additional financial institutions to qualify for FHLB membership, and establishes compensation guidelines for FHLB executive officers. The 11 regional FHLBs serve as government-sponsored enterprises to support mortgage lending and related community investment through advances to member financial institutions.
First, each FHLB must increase the annual amount contributed to the affordable housing program or other community development programs.
The bill also allows small credit unions and community development financial institutions to (1) qualify for FHLB membership by meeting reduced requirements, and (2) use advances for purposes other than mortgages, such as for small business activities.
Finally, the compensation for FHLB executive officers must be reasonable and comparable to compensation for similar positions at similar institutions. In determining such compensation, the FHLB must consider the level of investment in affordable housing and community programs.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionS. 1439
A BILL
Federal Home Loan Banks' Mission Activities Act
Sponsor: Sen. Catherine Cortez Masto (D-NV) · Introduced Apr 10, 2025 · Finance and Financial Sector · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Apr 10, 2025: “Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.”
Sections
Sections · 6
- Sec. 1Short titleNo change
- Sec. 2PurposeNo change
- Sec. 3Adding credit unions and community development financial institutions to the definition of community financial institutionsNo change
- Sec. 4Affordable housing programNo change
- Sec. 5Compensation of executive officersNo change
- Sec. 6Reporting on collateralNo change