Federal Home Loan Banks Face Amped-Up Pressure From Biden Administration, Senators
- Lawmakers call lenders’ compensation of executives ‘troubling’
- Deputy Treasury secretary, FHFA held call with banks last week
The outreach comes as Democrats make a case to voters that they’re addressing sky-high housing costs.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
President Joe Biden’s administration and Senate Democrats are ramping up pressure on the Federal Home Loan Bank system to pump more money into solving the nation’s housing crisis.
Senators Catherine Cortez Masto, Elizabeth Warren, Ron Wyden and other lawmakers sent letters to FHLBs last week, calling out how much the government-backed system pays to executives. They also called on the lenders to increase the share of profit they put toward affordable housing and community development programs beyond the 15% they’ve already pledged.