Lending Slowdown Puts Federal Home Loan Banks under Pressure

By Olson, Thomas | Tribune-Review/Pittsburgh Tribune-Review, November 30, 2010 | Go to article overview

Lending Slowdown Puts Federal Home Loan Banks under Pressure


Olson, Thomas, Tribune-Review/Pittsburgh Tribune-Review


The slow pace of bank lending has become a drag on a less- visible front -- the Federal Home Loan Bank system.

The 12 wholesale banks, including one in Pittsburgh, earn income on money they lend to their member banks. So, when those banks make fewer mortgages and other loans to families and businesses, they don't borrow as much from the home loan banks.

The Pittsburgh home loan bank, located on Grant Street, Downtown, employs about 230 people. The bank provides funding for home mortgages and community development to 314 member banks in Pennsylvania, Delaware and West Virginia. They range in size from PNC Bank, the state's largest, to Eureka Bank, which has two offices.

A report on the Federal Home Loan Bank system by Moody's Investors Services said the wholesale banks' earnings are improving but are still under pressure. Moody's rates the 12 home loan banks as well above investment grade, but they face challenges from weak loan demand.

"The banks still have strong liquidity. Deposit growth is still pretty strong, but loan growth is down sharper than in past recessions," Brian Harris, the analyst who wrote the Moody's report, said Monday.

Total loans to their member banks dropped nearly 21 percent, to $499 billion as of Sept. 30, vs. $631 billion a year ago, according to the Federal Housing Finance Agency, which oversees the home loan bank system.

Total loans were at an all-time high of $929 billion, as of Sept. 30. 2008, "which is unheard of," said Stephen Cross, the agency's deputy director.

"Since October 2008, there were a plethora of federal programs to rescue the economy, and home loan bank (loans) came down to a more normal level," said Cross.

"We stepped in before the Fed programs revved up," said Terry McKay, spokeswoman for the Federal Home Loan Bank of Pittsburgh. …

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

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.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Lending Slowdown Puts Federal Home Loan Banks under Pressure
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
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?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    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.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.