SEC Registration for FHLBanks Expected

The Federal Housing Finance Board is expected to approve a final rule at a June 23 meeting that will require the Federal Home Loan Banks to register a class of their securities with the Securities and Exchange Commission.FHLBank officials and members have been resisting SEC registration for the past two years, and many were hoping the rule would be ditched when Finance Board Chairman John Korsmo resigned. However, it appears that meetings with SEC officials have resolved several issues that initially concerned the FHLBank community. And the Senate Banking Committee approved a bill that would mandate SEC registration, but also directs the SEC to consider the cooperative structure of the FHLBanks. These developments may have tipped the scale, and it appears that the Finance Board will approve the final rule by a 4-0 vote, sources have told MortgageWire.