home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Origination News | Lender Ranking | Fundings by Lender | Statistics
Quarterly residential mortgage production by lender. Subprime, Alt-A, home equity and conforming originations. Volume by quarter since 2003.

FHLB Volume Strong

$640 billion in outstanding advances on June 30

August 30, 2007


photo of Patrick Crowley

Federal Home Loan Bank system executives report increased cash advances to member institutions.

Nine of the 12 banks in the nationwide system -- a government sponsored enterprise created to provide liquidity to more than 8,000 lenders -- reported increased lending in the second quarter, according to a MortgageDaily.com review of the banks' financial statements.

Overall, the banks had advance originations of $3.507 trillion during the first half of 2007, easing from $3.604 trillion a year earlier. But advances are growing more significantly during the third quarter, bank officials say.

FHLB advances are secured by residential and commercial mortgages held by member institutions as well as small business and agricultural loans.

The outstanding advances at the end of June were $640.0 billion.

Although many of the banks don't discuss financial information other than in quarter, annual or other mandated statements and reports, others said that lending activity picked up in August, when the credit markets were rattled by the shakeout in the subprime lending industry.

"We're seeing an increase in advances because homebuyers and coming back to community lenders and community banks," Alfred A. DelliBovi, CEO of the Federal Home Loan Bank of New York told MortgageDaily.com.

Advances totaled $2 billion during the second week of August, the FHLB of New York reported.

"And those community lenders are members of the Home Loan Bank of New York," DelliBovi said. "We see a demand for members needing liquidity so they can keep doing business.

"Investors are not interested in mortgages, they are interested in big returns," he said. "They'd be buying tulips if buying tulips offered a big return. But community banks, the members of the home loan bank system, are charged to do housing -- and they are coming here."

The FHLB of Atlanta advanced $7 billion to members during the first two-and-half weeks of August, spokesman Christopher McEntee confirmed to MortgageDaily.com.

"We have seen a rise in advance demand from member financial institutions, but given the situation, this is expected," McEntee said in an email. "Lenders look to the Federal Home Loan Banks as a dependable source of liquidity and we will continue to support their funding needs."

Countrywide Financial Corp., which has been battered by subprime woes and the lingering credit crunch, said in an Aug. 2 filing with the Securities and Exchange Commission that it may seek as much as $11.9 billion in advances from the Atlanta FHLB.

The Cincinnati FHLB also experienced an increase this month in loans, but spokesman John Byczkowski would not divulge any details.

"This is what we do," Byczkowski said in an interview. "Obviously our terms are more favorable than anywhere else. Banks have ongoing funding needs, including some of the bigger variety, and Wall Street is real tough right now. The money they need just can't be raised there, and they are getting better terms from us."

At the Seattle FHLB advances "continued to increase throughout July and into August, with advances outstanding at $32.1 billion as of Aug. 9," the bank said in a statement. "Increasing advance volumes reflect, in part, a recent increase in volatility and widening of credit spreads in the capital markets."

"Our members rely on the Seattle Bank cooperative for backup liquidity, and we are here to meet their needs," bank CEO Richard M. Riccobono said in the statement. "As other sources of liquidity have become more constrained, they have turned to us for funding, and our advance volumes have increased accordingly."

Patrick Crowley is a feature journalist and blogger for MortgageDaily.com. He is also a reporter, blogger and columnist for The Cincinnati Enquirer.
e-mail Patrick at: [email protected]

GSE News | Fannie/Freddie Share Statistics
Fannie, Freddie and FHLB news. Coverage of government sponsored enterprise regulation, operations and litigation.

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders