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Federal Home Loan Bank Of Chicago

Taking Full Advantage Of The Cloud

The Federal Home Loan Bank of Chicago Goes All In on AWS

The first step was rebuilding its 10-year-old loan underwriting platform. The platform is responsible for receiving, validating, and processing loan requests from hundreds of member institutions to ensure that all loans meet collateral, credit, and capital stock requirements and regulations. The Banks original platform, the Automated Advance Approval Process , had started to accumulate tangled layers of business logic and extensions added by different teams over the course of a decade. This slowed the Bank down and posed a series of technical challenges including testing complexity and scaling limitations.

When FHLBank Chicago and Slalom partnered to redesign AAAP, we both saw an opportunity to modernize the companys DevOps tech stack in the process. Operational improvements including the creation of continuous integration and continuous delivery pipelines could help teams automate testing and other previously laborious tasks.

The platform and the rest of the Banks IT infrastructure were already on the Amazon Web Services cloud platform, so we leveraged the AWS Well-Architected Framework to help the Bank adopt best practices in a variety of areas. Together, we:

  • Optimized application development with .Net Core and Angular.
  • Automated testing with SpecFlow and Protractor.
  • Implemented infrastructure as code with Terraform, and container orchestration with Docker and Amazon Elastic Container Service .

Federal Home Loan Bank Of Chicago Affordable Housing Program

Cinnaire Lending, our nonprofit lending division, joined the FHLBC in 2015 because of their interest in having more CDFI members. As a member of FHLBC, we are able to take advantage of any products offered by them. One program we use is AHP for rental projects, which is a program that awards a grant subsidy of up to $850,000.00 through a competitive application process. The project does not have to be in the FHLBCs district of Illinois or Wisconsin to apply, but projects within the district do have a competitive advantage. AHP is gap funding for affordable rental projects and dovetails well with the Low Income Housing Tax Credit program. We have been able to use AHP as a tool to generate new business, solve problems for existing deals already in underwriting with us and reinforce relationships with our long-term clients.

History Of The Fhlb System

The Federal Home Loan Bank System was developed in response to the Great Depression, which devastated the U.S. economyespecially the banking industry. It was created by the Federal Home Loan Bank Act of 1932, the first in a series of bills that sought to make homeownership an achievable goal for more Americans. The rationale was by providing banks with low-cost funds to be used for mortgages. They would be more likely to make loans as a result, individuals would find it easier to borrow money to buy homes, thus stimulating the residential real estate market.

The FHLB originally consisted of 12 independent, regional wholesale banks . The Act provided them with total funding of $125 million. In 2015, though, the Seattle and Des Moines banks merged, reducing the total number of FHLBanks to its current 11.

The Act also created the Federal Home Loan Bank Board to oversee the system. It was discontinued in 1989, and oversight responsibility was transferred to the Federal Housing Finance Board and regulatory responsibility to the Office of Thrift Supervision . Since 2008, the FHLB has been regulated by the Federal Housing Finance Agency, created by the Housing and Economic Recovery Act .

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Impact Of The Federal Home Loan Bank System

Proponents of the Federal Home Loan Bank System argue it plays a critical role in the continuous flow of funds to the residential mortgage market, making housing and homeownership possible for millions. FHLBs also provide funding for rental properties, small businesses, and other neighborhood development initiatives, resulting in economic and employment growth, stronger local communities, and a higher overall quality of living.

However, critics claim that the FHLB, via its use of federally subsidized programs, distorts the basic supply-and-demand economics of the housing market. Funding through the FHLB, they argue, encourages irresponsible lending and a residential real estate cycle with more volatile booms and busts.

Meet The Recruiters Federal Home Loan Bank Of Chicago

Federal Home Loan Bank Of Chicago Community Investment

This event provides an opportunity to meet FHLBank Chicago to learn about internship positions and network with representatives.

Questions? Contact .

This event is sponsored by the iSchool.

If you will need disability-related accommodations in order to participate in any of the programs or events listed, please email the contact person or the iSchool Help Desk. Early requests are strongly encouraged to allow sufficient time for meeting your access needs.

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Federal Home Loan Bank Of Chicago Awards $206 Million Through Its Affordable Housing Program

CHICAGO, Oct. 31, 2022 /PRNewswire/ — The Federal Home Loan Bank of Chicago today announced that $20.6 million was granted through its Affordable Housing Program General Fund to help finance 35 housing projects located in Illinois and Wisconsin. These funds will support the acquisition, rehabilitation, and new construction of over 1,600 housing units. Descriptions of the 2022 AHP award recipients can be viewed here.

“The 35 housing projects supported through our AHP General Fund reflect our continued investment in Illinois and Wisconsin communities,” said Katie Naftzger, Vice President, Community Investment Officer, FHLBank Chicago. “This program, now in its 32nd year, subsidizes the development and preservation of affordable rental and owner-occupied housing grants through our member institutions in partnership with developers, community organizations, public housing authorities, tribal governments, and other units of government.”

FHLBank Chicago annually contributes 10% of its net earnings to affordable housing programs, including both the AHP General Fund and the Downpayment Plus® Programs. In 2022, more than $12.2 million in forgivable DPP Program grants have been disbursed through FHLBank Chicago’s member institutions to assist with down payment and closing costs for eligible households.

Financial Results And Condition

Since August 2006, all 11 banks have been registered with the United States Securities and Exchange Commission and all financial statements and other filings are available to the public at the SEC web site .

On August 5, 2011, the Federal Housing Finance Agency announced that the FHLBanks had satisfied their obligation to make payments related to the Resolution Funding Corporation bonds. The Banks were required to pay 20 percent of their net income toward the RefCorp bond payments. Each Bank now pays 20% of its net income into its own separate restricted retained earnings account until the account equals one percent of that Bank’s outstanding consolidated obligations.

At December 31, 2014, each of the FHLBanks was in compliance with its statutory minimum capital requirements and the FHLBank System as a whole was above its minimum capital requirements.

On March 27, 2015, the FHLBanks Office of Finance published the 2014 Combined Financial Report. For 2014, the FHLBanks recorded net income of $2,245 million. Combined assets of the FHLBanks were $913.3 billion as of December 31, 2014. Of this total, advances equaled $571 billion. Investments were the second largest component at $267 billion. Mortgage loans held for portfolio were $44 billion. The FHLBanks made affordable housing contributions of $269 million in 2014.

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Maximizing Gain On Sale

As you saw above, A/A remittance offers the best price out of the three. If you are not set up with an A/A MC and have the operational capacity to handle the change, switching to or adding an A/A MC can immediately improve your upfront pricing, which in turn will increase your gain on sale and potentially give your customers lower rates.

If you already have an A/A MC, you are already getting the best price, however, there are still ways to maximize income:

Scenario 1: Start taking out 30-day delivery commitments instead of 45 or 60 days. Shortening the lock period in combination with the A/A remittance type will give the best up front price available to you. Not only can this improve gain on sale, but it can also increase operational efficiency as well as customer satisfaction as you can potentially offer lower rates and close loans quicker than your competition.

Scenario 2: Implement and utilize an effective pipeline hedging strategy. By doing this, you can close a pool of loans within a mandatory delivery commitment rate stack, take out a five day mandatory delivery commitment, and deliver the pool of loans into the commitment. With this option, assuming an A/A remittance type, you will receive the best price FHLBank Chicago offers to its members.

Here we can see the price differences as described in the scenarios above:

Remittance Type

New Site Is Highly Flexible And Marketing Friendly

The Federal Savings Bank Opens National Home Loan Center in Chicago

Federal Home Loan Bank of Chicago is dedicated to providing their members with the most competitively priced funding and reasonable returns on their investment in the bank. Being one of a handful of chartered banks by the U.S. Congress in 1932 to promote home ownership, Federal Home Loan Bank of Chicago still holds those same core values to this day. Needing to align their website with their digital marketing efforts, Federal Home Loan Bank of Chicago turned to Americaneagle.com for the development and management of their digital marketing efforts. The site is built on the highly flexible and marketing friendly Sitefinity Content Management System allowing users the ability to effortlessly manage on page SEO, creation of page templates as well as manage the digital exâ¦

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How The Federal Home Loan Bank System Works

The 11 regional banks comprising the Federal Home Loan Bank System, known as FHLBanks, are structured as privately capitalized corporationsspecifically, cooperatives. They are owned by their members, local financial institutions which buy stock in the FHLBank. The institutions must engage in real estate lending as a condition of membership. As cooperatives, the FHLBanks pay no federal or state income taxes.

Federal Home Loan Bank Of Chicago Announces New Grant Programs Aimed At Increased Diversity In Affordable Housing Development And Small Business Growth

CHICAGO, April 1, 2022 /PRNewswire/ â The Federal Home Loan Bank of Chicago today announced three program offerings designed to address critical affordable housing and community economic development needs in Illinois and Wisconsin. Two new programs target affordable housing development and access, while an enhanced capacity building program will bring needed support to small businesses.

âOur 2022 Targeted Community Lending Plan identified opportunities for additional investment in the diverse communities we serve throughout Illinois and Wisconsin,â said Katie Naftzger, Vice President, Community Investment Officer, FHLBank Chicago. âTo improve outcomes and expand access to opportunities for new housing developers, homebuyers, and small businesses, we are bringing new resources to the table. Our three new programs will create lasting impact for individuals and communities and increase scale in the marketplace, from which all FHLBank Chicago member financial institutions will benefit, as well.â

Eligible beneficiary organizations include HUD-approved housing counseling organizations in Illinois and Wisconsin. The organizations can use grant funds for capacity-building activities that expand organizational reach to minority and low- and moderate-income homebuyers, including but not limited to: Marketing and outreach activities Program staffing and Technology upgrades that facilitate expanded service to these underserved populations.

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Holding True To Its Mission

A week before launch, the teams overcame an unexpected hurdle: collaborating remotely due to COVID-19. Thanks to modern ways of working in the cloud, from any location, Slalom and the Bank safely launched the solution. On the first day of business after launch, FHLBank Chicago completed 60 transactions from initial request all the way to fulfillmentwith a combined value of approximately $8 billion.

The Bank brought a new product to market in the early days of the pandemic: a special advance with a 0% interest rate to support qualifying members impacted by COVID-19. On the day of the promotion, hundreds of members took out applications. By the end of that day, you could see hundreds of transactions settled. With a modern system in place that can easily handle new products and process billions of dollars daily, its easier than ever for the Bank to hold true to its mission of providing same-day, reliable funding.

Is Your Remittance Type Costing You Money

Federal Home Loan Bank Of Chicago Careers

When it comes to mortgages, a remittance is when a servicer collects payments due from borrowers and sends the funds, as required, to the investor. But if you retain servicing, is your remittance type selection limiting your institutions income potential?

Did you know that in addition to the benefits of retaining servicing, the remittance type you choose can also provide further price benefits? In this white paper, we will cover these topics, as well as go over the different remittance types the Federal Home Loan Bank of Chicago has to offer and the different pricing between each.

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The Federal Home Loan Bank Of Chicago Offers The Best Work Experience For The Part

The Federal Home Loan Bank of Chicago is the central clearing house for the federal governments home mortgage program. It was established by the federal governments Department of Housing and Urban Development . The FHA guarantees the loans for the majority of the homes in the country through the Home Affordable Program. This service is free for the homeowner and the loan can be used for almost any reason. The primary purpose is to assist the lower and middle class homeowners in owning their homes.

The FHA operates through the federal government and the banks. FHASecure is the name given to the entire bank. It is the ninth largest financial institution in the United States and the second largest bank in the Illinois. The FHA operates through the Department of Housing and Urban Development under the Department of Commerce, the U.S. Department of Agriculture, the Federal Deposit Insurance Corporation, the Department of Financial Services, the Consumer Financial Protection Bureau, the Federal Reserve System,

The FHASecure home loans in the state of Illinois have several advantages and the federal home loan program is one of the most attractive ones. The Illinois government has developed the FHASecure home financing program to promote the affordable housing needs of the people residing in the state of Illinois. This is the reason the federal home loan bank of Chicago is the member financial institutions in the state of Illinois.

Federal Home Loan Bank Of Chicago And Ginnie Mae Reach $3 Billion Milestone In Mpf Government Mbs

CHICAGO, June 29, 2022 /PRNewswire/ — The Federal Home Loan Bank of Chicago and the Government National Mortgage Association announced today that total issuance under the Mortgage Partnership Finance® Program recently surpassed $3 billion in mortgage-backed securities . The MPF Government MBS product resulted from a partnership forged by FHLBank Chicago and Ginnie Mae to issue securities guaranteed by Ginnie Mae and backed by mortgages originated by Federal Home Loan Bank member financial institutions. The MPF Government MBS product provides mortgage lenders, particularly smaller institutions, direct access to the secondary mortgage market and more mortgage loan solution options for their valued customers.

Ginnie Mae developed the first mortgage-backed security in 1970, by pooling loans into a security sold in the secondary market.

“The MPF Program is an important partnership for making the Ginnie Mae MBS system accessible to small community banks and lender partners, and this $3 billion milestone demonstrates its value in the marketplace,” said Ginnie Mae President Alanna McCargo. “This program advances our mission and commitment to ensure liquidity for government mortgage products and create more equitable and affordable homeownership opportunities for households across the country.”

Federal Home Loan Banks across the nation offer the MPF Government MBS product to their members.

About the MPF Program

About Ginnie Mae

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Federal Home Loan Bank Of Chicago Announces Results Of 2022 Director Election

CHICAGO, Oct. 27, 2022 /PRNewswire/ — The Federal Home Loan Bank of Chicago today announced the results of its 2022 Director Election. Members elected two directors from Illinois, one director from Wisconsin, and one public interest independent director who ran unopposed. Each director will serve a four-year term beginning January 1, 2023.

Illinois members elected Betsy A. Johnson and Michael G. O’Rourke.

Michael “Mick” G. O’Rourke currently serves as President and CEO of Signature Bank and has over 30 years banking experience. He previously served as Associated Bank Executive Vice President, until he left to organize Signature Bank. He was previously employed by LaSalle Bank N.A. and American National Bank. Mr. O’Rourke is currently the Chairman of the Board of St. Patrick High School and Treasurer of the Western Golf Association/Evans Scholar Foundation. He is a member of the Community Bank Council for the American Bankers Association. He also serves as a Director of St. Angela School, the American Ireland Fund, and the Chicagoland Chamber of Commerce. He served as Director of the Illinois Banker Association from 2009-2015 and served as Director of Navy Pier from 2010-2020. Also, he previously was a Director of Schawk, Inc. and Lancer Insurance. Mr. O’Rourke has a bachelor’s degree from Marquette University and a master’s degree from Loyola University in Chicago.

For the public interest independent director seat, FHLBank Chicago members elected Kevin L. Newell.

Federal Home Loan Bank Of Chicago And Its Importance

Mortgage Partnership Finance Program or MPF

Federal Home Loan Bank of Chicago is one of the two main federal home loan bank of Chicago entities. The other is the Cook County government. It serves many peoples needs by providing home loans for people looking to purchase homes. Home loans are provided by FHLB Chicago regardless of the borrowers credit history.

FHLB is governed by a board of directors elected each year from the local governing body and a federal home loan bank of chicago board of directors, who are also elected. The five members of the board are also appointed by the federal government through the U.S. Department of Housing and Urban Development.

The FHSBC holds all federal home loan bank of chicago certificates and policies and reserves the right to issue federal home loan bank of chicago trust deeds. These bank notes are federally guaranteed. It is one of the two Chicago area banks that do not have a separate license but instead is one of twelve district banks chartered by the U.S. Department of Banks.

Under the federal home loan bank of chicago, its Chicago headquarters is located at the corner of North Ave and Wrigley Road. The branch has six branches including the one in downtown Chicago. It also has several satellite branches in Wisconsin, Michigan and Texas. Its Wisconsin facility provides assistance to residents of Wisconsin, Iowa, Minnesota, New Mexico and California. Two branches of this institution are located in Chicago.

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