FHFB Authorizes Temporary Increase on Purchase of Mortgage Back Securities
"The Board of Directors of the Federal Housing Finance Board (Finance Board) today
by notational vote passed a resolution authorizing the Federal Home Loan Banks to increase their purchases of agency mortgage back securities (MBS). The resolution is effective immediately.

Pursuant to the resolution, the limit on Federal Home Loan Banks’ MBS investment authority would increase from 300 percent of capital to 600 percent of capital for two years. The resolution requires an FHLBank to notify the Finance Board prior to its first acquisition under the expanded authority and include in its notification a description of the risk management principles underlying its purchases. The expanded authority is limited to Fannie Mae and Freddie Mac securities."