The Seattle Federal Home Loan Bank has received regulatory approval to use existing excess stock to capitalize advances so that member banks and thrifts don't have to purchase additional stock in the troubled FHLBank.As approved by the Federal Housing Finance Board, members can tap a shared pool of about $350 million in excess stock when borrowing from the FHLBank during the next two years. Members are generally required to meet a stock purchase requirement when borrowing advances. But the Seattle bank is having a hard time selling stock (with a five-year redemption period) since it suspended dividend payments. By using excess stock, the Seattle bank hopes to increase its advance business and rebuild its earnings. Since the start of the year, advances increased by $5.5 billion to $26.9 billion as of June 30. The Seattle FHLBank has been operating under a supervisory agreement since December 2004.
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A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
6h ago -
Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
8h ago -
While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
11h ago -
The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
11h ago -
Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
11h ago -
The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
11h ago