Home Loan Banks to Trim the Fat; Finance Board Seeks a Streamlining of Back Offices

By Cope, Debra | American Banker, September 20, 1991 | Go to article overview
Save to active project

Home Loan Banks to Trim the Fat; Finance Board Seeks a Streamlining of Back Offices


Cope, Debra, American Banker


Home Loan Banks to Trim the Fat

WASHINGTON - The government is taking what may be a first step to consolidating the 12 banks in the Federal Home Loan Bank System.

The Federal Housing Finance Board said Thursday that it had launched a drive to streamline the back offices of the regional Home Loan banks. The initiative may set the stage for eventual mergers of the banks.

Speculation has been rising about consolidations of the 12 banks, which were established in the 1930s to provide liquidity to home lenders and have seen their activities constrained along with the thrift industry's troubles.

Over the next 90 days, a Finance Board task force will conduct a thorough review of the operations and begin to eliminate overlapping functions, particularly in the cost-intensive data systems area.

Planned Phase-In for Cuts

Officials of the Finance Board - an agency set up in 1989 to oversee the Home Loan banks - anticipate they can cut operating expenses by $10 million to $20 million a year. That would be a noticeable chunk of total expenditures, estimated at $260 million in 1991.

Once recommendations are in hand, cost-cutting measures will be phased in over the next year.

Each of the 12 Home Loan banks maintains an independent data-processing system for tracking such elements as investments, loans, and collateral. By sharing hardware, software, and personnel, they could slash expenses dramatically, agency officials maintain.

The task force - headed by Finance Board Directors Lawrence U. Costiglio and Marilyn R. Seymann - has begun taking inventory of all operations, from equipment purchases to maintenance contracts to telephone services.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

Home Loan Banks to Trim the Fat; Finance Board Seeks a Streamlining of Back Offices
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?