As REITs Ramp Up FHLB Borrowings, They Wait for the FHFA to Issue Its Decree on ‘Captive’ FHLB Membership
July 16, 2015
While the Federal Housing Finance Agency takes its time deciding whether nonbanks should be allowed to use captive insurance units to become members of a Federal Home Loan Bank, real estate investment trusts appear to be ramping up their borrowings from the system’s advance window. At least that’s what Inside Mortgage Finance found when it recently conducted a spot check of mortgage REITs that have gained access to the FHLBank system via a captive insurance subsidiary. Redwood Trust, for example, had...