On the latest episode of NAHB’s podcast, Housing Developments, CEO Jim Tobin and COO Paul Lopez are joined by Council of Federal Home Loan Banks CEO Ryan Donovan to spotlight how the home loan bank system can support housing development, especially affordable housing, and what the system is doing for the economy.

“For those who may not be familiar with the home loan bank system is, it’s a system of 11 financial cooperatives that are essentially wholesale lenders to banks, credit unions, insurance companies, and CDFIs [or community development financial institutions],” Donovan explained about the government-sponsored enterprise (GSE). “Collectively, they serve about 6,500 financial institutions.”

“Our job is to provide the liquidity that they need to meet the lending needs of their customers and their members, in the case of credit unions,” he added. “We do that by taking collateral — collateral that Congress has determined that we can take — and it’s mostly mortgage-related collateral. And that’s the connection we have to housing and housing finance.”

The Federal Home Loan Banks recently released their 2024 impact report, highlighting a landmark year of support for housing affordability and community development across the United States. The report, the third produced by the system, provided an opportunity to not only tell their story but also solicit feedback from stakeholders about the system’s efforts and what more can be done to support affordable housing.

The home loan bank system also has a tenured history of providing support, even during periods of economic uncertainty, and collaborating with a variety of partners to ensure financial resources are available.

“Everybody recognizes there isn’t a single solution to the housing affordability crisis that we face, and for these projects, oftentimes there aren’t single funders,” Donovan noted. “It’s groups coming together to put together the funding package.”

Tobin and Lopez also review upcoming advocacy efforts as Congress enters its August recess, including the likelihood of a government shutdown in September; recent tariffs announcements; and the latest actions (or lack thereof) by the Federal Reserve.

Listen to Housing Developments on any podcast provider or watch below for more. Check out the podcast archives on YouTube for past episodes.