October 4 — Community Bankers Association of Illinois annually presents a Service Development Award to a provider of goods and/or services to Illinois community bankers who have performed above and beyond the call of duty to benefit the cause of community banking through CBAI either during the past year or over a period of years. CBAI announced at its 44th Annual Convention, held recently in St. Louis, that the recipient of the 2018 Service Development Award is Federal Home Loan Bank of Chicago.
Created by Congress in 1932, the mission of FHLBC is to provide reliable liquidity to its member institutions to support housing finance and community investment. Today, the bank has more than $25 billion in advances outstanding to its Illinois bank and thrift members, as well as letters of credit and other obligations that ensure community financial institutions have sufficient funds to meet the credit needs of their communities.
According to a release from CBAI, the FHLBC is known for its innovation in developing new products to serve its community financial-institution members. It pioneered the Mortgage Partnership Finance program, a risk-sharing alternative to the secondary market that has been used by Illinois banks and thrifts to fund nearly $16 billion of mortgages for their home-buying customers. The MPF progam is now offered by nine of the 11 Federal Home Loan banks and has funded more than 1 million mortgages nationwide, saving participating banks nearly $800 million in fees that otherwise would have been paid to mortgage securitizers.
In addition to its support of housing and community economic development at the local level, the bank also supports CBAI and has endowed a scholarship for the Community Bankers School that covers the cost of tuition for a bankers to attend this two-year school.
“Clearly,” CBAI’s release states, “the Federal Home Loan Bank of Chicago and CBAI share similar missions serving the interests of the community-banking profession and the communities they serve.”