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legislation: 104-hr-1657

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bill_id congress bill_type bill_number title policy_area introduced_date latest_action_date latest_action_text origin_chamber sponsor_name sponsor_state sponsor_party sponsor_bioguide_id cosponsor_count summary_text update_date url
104-hr-1657 104 hr 1657 Federal Home Loan Bank System Restructuring and Modernization Act of 1995 Finance and Financial Sector 1995-05-17 1995-06-02 Referred to the Subcommittee on Capital Markets, Securities and Government Sponsored Enterprises. House Rep. Gonzalez, Henry B. [D-TX-20] TX D G000272 0 TABLE OF CONTENTS: Title I: Amendment of Federal Home Loan Bank Act Title II: Employee Provisions Title III: Conforming Amendments Federal Home Loan Bank System Restructuring and Modernization Act of 1995 - Title I: Amendment of Federal Home Loan Bank Act - Amends the Federal Home Loan Bank Act to declare its purpose is to support residential mortgage lending and community development lending through a program of collateralized advances to Federal Home Loan Bank (FHLB) System members. (Sec. 103) Revises Federal Housing Finance Board (FHFB) membership to include: (1) the Secretary of the Treasury; (2) part-time directors, one of whom shall represent consumer or community interests; and (3) a term reduced from seven years to six. (Sec. 104) Abolishes the Office of Finance. (Sec. 106) Specifies additional requirements for the readjustment of FHLB districts and banks through merger or otherwise. (Sec. 107) Modifies FHLB membership eligibility criteria to require maintenance of at least ten percent of total assets in whole first mortgages on improved residential property (excluding either a partial interest in a residential mortgage loan or any security representing such an interest from the definition of "whole first mortgage"). Denies advances and provides for removal after four consecutive quarters for failure to maintain such asset requirement. (Sec. 108) Modifies procedural guidelines with respect to: (1) subscriptions to capital stock; (2) stock redemptions, withdrawals, or cancellations; (3) member removal by FHFB; (4) member undercapitalization; and (5) a transitional withdrawal period. (Sec. 110) Sets forth a statutory enforcement scheme for prompt corrective action by the FHFB with respect to inadequately capitalized member banks. Mandates capital measures that include a leverage limit and a risk-based capital requirement. Prescribes capital measurement components for credit risk, interest rate risk, and capital for a source of earnings. Restricts: (1) capital distributions; (2) asset growth; (3) senior executive officers' compensation; and (4) activities of critically undercapitalized FHLBs. (Sec. 111) Modifies the guidelines governing: (1) FHLB directors; (2) eligibility to secure advances; (3) advances to member banks; (4) advances to nonmember mortgagees; (5) borrowing money and issuance of FHLB bonds; (6) general banking business transactions; and (7) FHLB audits. (Sec. 115) Directs the FHLB System to establish a central office to implement issuance of consolidated obligations. Repeals FHLB authority to issue consolidated FHLB debentures. (Sec. 116) Revises procedural guidelines affecting: (1) incorporation of FHLBs, corporate powers, and housing project loans; (2) reserves and dividends; and (3) payments by FHLBs to the Funding Corporation. Repeals guidelines pertaining to eligibility of State organizations to membership in the FHLB System. (Sec. 123) Empowers the Board to: (1) require an FHLB to merge with another; and (2) issue cease and desist orders to an FHLB or affiliated party believed by the Board to be engaged in unsafe or unsound banking practices. Title II: Employee Provisions - Requires FHFB directors to assess the staffing needed to implement FHFB duties, and to complete within one year of the enactment of this Act the personnel actions necessary to ensure that the FHFB will be staffed appropriately. Title III: Conforming Amendments - Amends the following Acts to make conforming amendments to reflect this Act: (1) the Federal Credit Union Act; (2) the Federal Deposit Insurance Act; (3) Home Owners' Loan Act; (4) Housing and Urban-Rural Recovery Act of 1983; (5) Right to Financial Privacy Act of 1978; (6) Thrift Institutions Restructuring Act; and (7) the Federal criminal code. 2025-08-21T20:16:34Z  

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