The Federal Home Loan Bank System (FHLBank System) is federally created to ensure liquidity for qualified thrift lenders, aiming to support housing finance and community development.
A federal law enacted in 1989 aimed at restructuring the regulatory framework for savings and loan associations, improving deposit insurance, and addressing systemic issues within the financial sector to mitigate the impact of future crises.
The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) was enacted in response to the Savings and Loan (S&L) crisis, aiming to restructure the regulatory framework and revitalize the financial industry.
A Qualified Thrift Lender (QTL) is a financial institution that specializes in home mortgage finance and is required to hold a significant portion of its portfolio in residential mortgage loans or mortgage-backed securities, as per the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA).
Savings and Loan Associations (S&Ls) are depository institutions that specialize in originating, servicing, and holding mortgage loans, primarily on owner-occupied residential property.
