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  • Comment Detail

  • Date: 10/19/22
    First Name: Thomas
    Last Name: Bailey
    Email: TBAILEY@BRENTWOODBANK.COM
    Organization Type: other
    Organization: Brentwood Bank

  • Comment

    Thank you for the opportunity to provide comments on the FHLBanks as part of FHFA’s comprehensive review of the System.

    I am the President and CEO of Brentwood Bank and a member of the Board of Directors of FHLBank Pittsburgh.

    Brentwood Bank (“Brentwood”) has about $850 million in assets and 103 employees. I have been an employee of Brentwood for 37 years and Brentwood has been a member of the FHLBank Pittsburgh prior to my joining. Brentwood has served the unique needs of individuals, families, and small businesses in the south hills of Pittsburgh for 100 years.

    FHLBank Pittsburgh products including advances, letters of credit and the Mortgage Partnership Finance Program are essential to helping Brentwood serve the community. Due to the uncertainty of deposits, we use FHLBank advances to help fund mortgages and small business loans allowing the bank to lend more in the community. In 2021 alone Brentwood Bank borrowed $27 million from the FHLBank’s Community Lending Program (“CLP”) to fund loans on multifamily properties for low- and moderate-income individuals. The Mortgage Partnership Finance Program has provided another liquidity source to Brentwood while allowing us to offer competitive mortgage products against larger financial institutions and mortgage lenders. The letter of Credit Programs allows us to compete for local municipal deposit since our investment portfolio is not always available to meet pledging requirements and state laws. These FHLBank programs are helping our communities thrive while creating and sustaining jobs.

    Brentwood further leverages our FHLBank membership enlisting the knowledge and expertise of our local FHLBank’s Community Investment Department staff when attempting to provide 1st time Home Buyer support or low-income senior living through the community investment programs including the Affordable Housing Program and voluntary programs such as Banking on Business. Brentwood was able to refinance a H.U.D. Nursing Facility with funding from the FHLBank.

    The cooperative nature and regional structure of the FHLBanks enable each FHLBank to respond to local needs, and design products and services tailored to the communities served by their members. As you consider the future of FHLBanks, it is essential that essential to retain this structure and focus.

    Thomas Bailey
    President & CEO