New Process for Appointing Federal Home Loan Bank Public Interest Directors
NAHB members who are interested in being appointed as public interest directors on the 12 boards of the Federal Home Loan Banks (FHLBank) should be aware that a new rule on the procedures for filling vacancies was approved by the Federal Housing Finance Board (FHFB) on Jan. 18.
The rule makes each FHLBank board responsible for conducting a preliminary assessment of candidates in its district and forwarding the most qualified candidates to the Federal Housing Finance Board for its consideration. The FHFB can reject or accept any of the candidates and can also call upon the bank boards for additional candidates.
Under the rule, interested parties such as NAHB are allowed to make recommendations to the boards on behalf of individuals they believe are well-qualified for the position. However, candidates are required to complete and submit new eligibility forms before those recommendations can be considered by the FHLBank boards.
The eligibility form is intended to help the boards determine if the candidate has the knowledge and experience required by the position in such areas as capital market transactions, management of assets and liabilities, the use of derivatives, accounting and financial modeling, mortgage markets, affordable housing, community investment and legal and regulatory compliance. (The form is available at www.fhfb.gov).
Under the new rule, candidates can also attach a resume to the form to provide information on additional business, professional or educational achievements that are not included in the responses to answers on the form.
Interested candidates for the 57 seats currently vacant on the 12 boards should submit their forms and resumes to the appropriate district board for consideration as soon as possible. The bank boards are required to submit to the Federal Housing Finance Board a list of individuals for the directorship positions by March 31, and they are allowed to include twice as many candidates as there are directorships to fill.
In the future, the bank boards will forward to the FHFB the names of well-qualified candidates for future vacancies every Oct. 1.
For more information and questions on filling out the form, e-mail Donna Ely at NAHB, or call her at 800-368-5242 x8529.