The Federal Housing Finance Board this week rejected two new cash advance programs for Federal Home Loan banks.
On the table at the board's meeting Wednesday were plans to create a rural development advance and an urban development advance that would make more borrowers eligible for economic development loans.
An existing economic development program lets Home Loan member banks and thrifts get cash advances for loans to families earning no more than 80% of the area's median income. The proposed programs would have set a 95% income limit. But board member J. Timothy O'Neill suggested eliminating income limits and voted against the proposal with fellow board member Lawrence U. Costiglio.
Separately, the agency streamlined its community support program to reduce reporting requirements for some members.
Members with "outstanding" Community Reinvestment Act ratings will not be required to provide any more information. Those rated "satisfactory" or lower must supply evidence of loans made to first-time homebuyers or participation in a program that serves them. A new one-page Community Support Statement form also will help reduce compliance requirements.