Viewing a single comment thread. View all comments

ProfBU OP t1_izxwu0q wrote

Reply to comment by The_Law_of_Pizza in I’m Cornelius Hurley, academic, lawyer, 14-year director of a Federal Home Loan Bank. Ask me anything about the FHLBs. by ProfBU

Thanks for this excellent question about affordable housing.

Here's the issue. Congress has mandated 10% of net income for affordable housing. FHLBs treat that at a ceiling rather than a floor. In this public/private partnership why not require 50% of net income for affordable housing? Part of the problem too is the conflict of interest between the member banks that benefit from robust dividends. Also, every dollar of CEO and C-suite compensation undercuts their contribution to affordable housing. All the incentives need to be realigned. Thanks again.

144

lilbluehair t1_izy6f8o wrote

This is EXACTLY the kind of solution we need, I hope you can spend some of your retirement as an activist :)

37