The Brookings Institution and BU Law to Hold Joint Forum on the Future of the Federal Home Loan Bank System

The Brookings Institution and Boston University School of Law will co-sponsor a forum to explore the current state and future prospects of the Federal Home Loan Bank System. The system, established during the Great Depression 90 years ago, is a government-sponsored enterprise with nearly $1 trillion in assets and is one of the largest and most frequent debt issuers in the world. Its original and continued goal is to support mortgage lending and related community investment. Its role in the modern housing finance system has been questioned and its regulator, the Federal Housing Finance Agency, has announced a strategic review of the system.

The forum will be held in Washington, DC in February 2023. Brookings and BU Law have issued a call-for-papers inviting scholars and practitioners to examine various issues in connection with the reexamination of the system. The Review of Banking & Financial Law, a publication of Boston University School of Law, will publish proceedings of the forum and selected papers.

About Brookings

The Brookings Institution is a nonprofit organization devoted to independent research and policy solutions. Its mission is to conduct high-quality, independent research and, based on that research, to provide innovative, practical recommendations for policymakers and the public.

About Boston University School of Law

Founded in 1872, Boston University School of Law is one of the top law schools in the United States. Its 25,000 alumni live in all US states and territories and in more than 100 countries around the world.

Media Inquiries:

  • Boston University School of Law
    Kimberly Miragliuolo
    Communications Manager
    617-358-2883 o
    781-413-4915 m
    kmira@bu.edu

  • Brookings Institution
    Brieanna Nicker
    Media Relations and Outreach Coordinator
    202-540-7721 o
    bnicker@brookings.edu

The Federal Home Loan Bank System: Fit for Purpose in the Twenty-First Century?

In February of 2023, Boston University School of Law and the Brookings Institution will host a symposium on the Federal Home Loan Bank System. We will introduce a number of different viewpoints to help formulate the policy discussion surrounding the FHFA’s review. The opening question will be, “Is the FHLB System fine just the way it is?” as has been argued by the American Bankers Association.

Alternatively, some speakers will press the case that the best way forward for the FHLB System is to refocus on its core mission of providing mortgage finance to households. Additionally, the case will be made for radically expanding the FHLBs’ mission – perhaps expanding into broader infrastructure, industrial (re)-development, or clean energy finance. Alternatively, some scholars have advocated for abolishing this significant GSE entirely. Overarching all of these approaches is the question of what the FHFA can do on its own as a matter of administrative law and what courses of action can only be pursued with Congressional authorization.

The symposium will be a landmark event in the comprehensive review process launched by FHFA on July 20, 2022.

Call for Papers

In February 2023, Boston University School of Law and the Brookings Institution (Brookings) will co-sponsor a symposium in Washington, DC in February 2023 entitled: “The Federal Home Loan Bank System: Fit for Purpose in the Twenty-First Century?” To inform the symposium, BU Law and Brookings are issuing this call for papers to elicit thoughtful research among academics, practitioners, regulators, and others regarding the current state of the Federal Home Loan Bank (FHLB) System and its possible enhancements. Selected authors may be asked to contribute to workshops or panel discussions at the symposium.

Relevant topics include but are not limited to:

  • How do Federal Home Loan Banks currently impact housing finance?
  • Is the FHLB mission correct, how should it be articulated, and if it should be revised, then what should it be?
  • How should the FHLBs’ mission on affordable housing be structured?
  • How effective is the governance of the FHLB system through its cooperative structure and the system of 11 independent regional banks?
  • What is the value of the government’s implicit guarantee of FHLBs’ debt and their tax exemption? Is the value distributed appropriately among FHLBs, their member/owners, and the American public?
  • What, if any, risk to the financial system do the FHLBs pose and is that risk properly mitigated by the Dodd-Frank regulatory regime?
  • What is the impact (current or potential) of the FHLB system on the availability and cost of credit for borrowers from FHLBank members as well as lenders that are not members of the FHLBs?
  • What should be the criteria for membership in an expanded FHLB system (insurance, REIT, hedge funds, Fintechs, subsidiaries/parent rules, etc.)?
  • Does eligibility as FHLB collateral add value to that asset class? Should statutes and regulations governing collateral be changed?



All contributions to the symposium, including papers and commentaries, will be considered for publishing in the Review of Banking & Financial Law unless otherwise agreed in advance with the author. Submissions must be received by Monday, November 7, 2022. Those interested in submitting an article or participating in the symposium, should contact RBFL at rbfl@bu.edu.