Federal Home Loan Banks: Liquidity, Housing, and Credit Union Collaboration – with Ryan Donovan

🧭 Episode Summary

In this episode of With Flying Colors, I’m joined by Ryan Donovan, President & CEO of the Council of Federal Home Loan Banks, to discuss how the Federal Home Loan Bank (FHLB) system supports credit union liquidity, affordable housing initiatives, and policy advocacy.

We explore how the 11-member cooperative network functions, how it complements the role of the Federal Reserve, and what credit unions—especially smaller ones—can gain from becoming or staying active members.

📝 Key Takeaways

• The FHLB system is a liquidity lifeline for credit unions and community lenders, offering daily support—not just during crises.

• Home Loan Banks are credit union cousins, structured as member-owned cooperatives with strong relationships, not just transactions.

• The FHLB system voluntarily increased contributions to affordable housing programs from 10% to 15% of net earnings, committing $1.2 billion in 2023.

• Membership pays off: Research shows that credit unions in the FHLB system tend to grow loans faster, have more flexible balance sheets, and access capital markets more efficiently—especially small CUs.

• Under new FHFA Director Bill Pulte, the focus on housing affordability is intensifying, but the directive remains clear: keep doing what works.

💬 Quote from the Episode

"Home loan banks and credit unions are cooperative cousins. We’re both there for our members every day—and especially in times of crisis."— Ryan Donovan, CEO, Council of Federal Home Loan Banks

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