Politics The great American ‘homewashing’ is happening under our noses
Hilarie Burton Calls Candace Cameron Bure a ‘Bigot’ After Ex-Hallmark Actor Says New Network Will Focus on ‘Traditional Marriage’
After Candace Cameron Bure said her new network, Great American Family, would focus on stories of 'traditional marriage,' Hilarie Burton called her a 'bigot.'RELATED: Candace Cameron Bure Reveals Details of First Christmas Movie Since Quitting Hallmark
This is about a $1 trillion government-sponsored enterprise built upon a myth — the myth of the American home. It is also about reform on the way.
We have become familiar with the term “greenwashing,”as: “The act of providing the public or investors with misleading or outright false information about the environmental impact of a company’s products and operations.”
“Homewashing” is the same concept, except the object of the deception is housing rather than the environment.
The most prominent purveyor of homewashing is the massive government-sponsored enterprise known as the Federal Home Loan Banks. There arefrom Boston to San Francisco and points in between. They and their 6,500 member institutions follow a simple business model.
I’m a Conservative Who Got Heckled at Yale Law School. But Not by Who You Think.
The anti-free speech culture we see at law schools today permeates the legal world, and on both sides of the political spectrum.The law student didn’t know any of this, but was offended by this display of non-ideological human interaction and accused me of “buddying up” with his enemy.
The FHLBs borrow at a deep discount due to their government status. They then pass part of the government subsidized discount on to their members in the form of low-cost advances., the FHLBs had over $1 trillion in taxpayer-subsidized debt outstanding. Subsidized advances to members stood at $655 billion, an 86 percent increase over year-end levels.
It is all based on a myth.
The first part of the myth is that the subsidized advances to members are used for housing. This was the original purpose of the FHLBs when they were created by Congress.
In truth, the FHLBs’ subsidized advances can be and are used for anything the members wish to use the funds for. This was confirmed by themany years ago when it found: “Another challenge facing the system is that there is limited empirical information on the extent to which FHLBank advances and other services benefit housing and community finance.” Yet, the myth persists, presumably because the words “Home” and “Loan” are misleadingly embedded in the names of all 11 FHLBs.
Pink Pays Tribute To Olivia Newton-John At AMAs With Powerhouse Rendition Of ‘Hopelessly Devoted To You’
Plus, Pink performed her new, high-energy single 'Never Gonna Not Dance Again' live for the first time at the 50th American Music Awards. There’s no one, now or ever, who will come close to singing the Grease ballad ‘Hopelessly Devoted To You’ quite like Olivia Newton-John, but to honor the late actress and performer, Pink gave it a try — and came damn near close to perfection. Along with performing her new single for the first time live at the American Music Awards, Pink was asked to pay tribute to the Olivia, who passed away earlier this year.
The second part of the myth has to do with affordable housing and community development. By statute, the FHLBs are required to set aside a small portion of their earnings for this purpose. However, when one contrasts the taxpayers’ estimatedthe FHLBs with their paltry contributions to affordable housing and community development, the payout looks like this:
This disconnect would embarrass the most egregious greenwashers in the market today.
What it says is that for every $20 of taxpayer support for the FHLBs, only $1 is set aside for affordable housing. The other $19 goes directly to the FHLBs and indirectly to the FHLBs’ members. It is worth noting here that each of the CEOs of the 11 FHLBs receives. This is for distributing a government benefit to their members.
10 Sequels Nobody Asked For But Are Happening Anyway
Fans don't need another one of these.RELATED: Best Horror Sequels
Homewashing is even more pervasive than greenwashing. Greenwashing scammers only target investors. Every taxpayer is the victim of the FHLBs’ homewashing. Every taxpayer contributes to the FHLBs’ estimated $6.3 billion subsidy.
But it gets worse.
Banks that take advances from their FHLBs, that is most banks, do so in lieu of paying higher interest rates to their own customers. You’ve probably asked, “How can banks get away with paying onwhen the yield on 1-year treasuries is 4.75 percent?” The answer lies largely with the FHLBs.
In sum, taxpayers’ dollars support the FHLBs in exchange for which the taxpayers receive little to no benefit. Meanwhile, the FHLBs suppress the taxpayers’ returns on their bank accounts thus enhancing bank profits.
Bankers think this is a fine arrangement and it should be left alone. “Don’t mess with success,” the American Bankers Association has.
Luckily, the scales are falling from the eyes of taxpayers, banks, savers, housing advocates and, most importantly, the FHLBs’ regulator, the Federal Housing Finance Agency. Its launch of a centennial review of the FHLBs, dubbed,” sends a clear message that the housing myth can no longer be used as a cover for this elaborate scheme.
The stakes are extremely high, and the result is uncertain. One thing is certain, however. Stripped of their homewashing mythology, the FHLBs presents a unique opportunity for addressing some of the nation’s real financial challenges.
Cornelius Hurley was an independent director of the Federal Home Loan Bank of Boston from 2007 to 2021. He teaches financial services law at Boston University School of Law.
‘Survivor’: 1 Castaway Reveals the Camera ‘Screws’ With Players Searching for Idols .
Fans were outraged when the 'Survivor' Season 43 castaways kept walking past an advantage in episode 11, but one former player has an explanation for their delusion.In Survivor Season 43 Episode 11, the final seven castaways received mail that read, “With only seven left in the game, any advantage is an advantage worth having. There’s one hidden in your jungle.