Listen to a Business English Dialogue About Federal housing finance board
David: Kennedy, have you heard of the Federal Housing Finance Board?
Kennedy: No, what is it?
David: The Federal Housing Finance Board was a government agency in the United States responsible for overseeing the Federal Home Loan Bank System, which provided liquidity to member banks and promoted affordable housing finance.
Kennedy: What was the role of the Federal Housing Finance Board in the housing market?
David: The Federal Housing Finance Board regulated the activities of the Federal Home Loan Banks, ensuring they operated in a safe and sound manner and fulfilled their mission of supporting housing finance and community development.
Kennedy: How did the Federal Housing Finance Board contribute to housing finance?
David: The Federal Housing Finance Board established policies and guidelines for the Federal Home Loan Banks, helping them provide low-cost funding to financial institutions for mortgage lending and other housing-related activities.
Kennedy: Was the Federal Housing Finance Board involved in the regulation of mortgage markets?
David: Yes, the Federal Housing Finance Board played a role in overseeing the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal National Mortgage Association (Fannie Mae), which were government-sponsored enterprises involved in the secondary mortgage market.
Kennedy: Did the Federal Housing Finance Board face any challenges or controversies?
David: Yes, the Federal Housing Finance Board faced criticism for its oversight of the Federal Home Loan Banks and its response to the housing market downturn during the financial crisis of 2008.
Kennedy: What happened to the Federal Housing Finance Board?
David: In 2008, the Housing and Economic Recovery Act abolished the Federal Housing Finance Board and transferred its regulatory functions to the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac.
Kennedy: Thanks for explaining, David. The Federal Housing Finance Board played a significant role in housing finance and regulation in the United States.