FHLB to tweak diversity criteria, expand pool of securities dealers

By Susanna Moon

Chicago, Jan. 9 – Federal Home Loan Bank System said it will modify some debt programs and expand membership to securities dealers under its diversity program.

The changes are as follows:

• Approved diversity dealers may participate in the discount note auction, effective Jan. 31; and

• The minimum new issue par amount required for negotiated callable bonds will drop to $10 million from $15 million when the underwriting group includes diversity dealers, effective Jan. 10.

The Office of Finance also will expand the “scope of dealers eligible” for the Diversity and Inclusion program, according to the announcement.

The Office of Finance issues and services all debt securities for the FHLBanks.

FHLBank System is a Washington, D.C.-based government-sponsored enterprise that provides member financial institutions funding support for mortgage lending and community investment.

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