Despite some commendable improvements in its monitoring of the 12 Federal Home Loan Banks, the Federal Housing Finance Agency’s failure to establish policies, systems and documentation standards threatens to undermine the FHFA’s oversight of troubled FHLBanks, according to a new report by the FHFA’s overseer.The FHFA Office of Inspector General’s first report of 2012 picks right up where it left off last year in the OIG’s persistent criticism of the FHFA’s oversight of the GSEs.Since 2008, four FHLBanks – Boston, Chicago, Pittsburgh and Seattle – have faced “significant financial and operational difficulties,” primarily due to their investments in high-risk mortgage-backed securities. In 2009 and 2010, the four Banks posted losses of nearly $2.0 billion on non-agency MBS investments, the FHFA-OIG noted.