Washington, D.C. – The Federal Housing Finance Agency (FHFA) today requested, and the Federal Home Loan Bank of Seattle (Bank) agreed to provide, a supplement to the capital restoration plan submitted by the Bank.
FHFA on November 6, 2009 exercised its statutory authority to classify the Bank as "undercapitalized." As a result of that classification, the Bank is currently unable to repurchase and redeem member stock. Although the Bank currently satisfies all existing capital requirements, FHFA determined that the Bank needed to supplement its earlier submissions with a more specific business plan with steps the Bank will take to resume timely repurchases and redemptions of member capital stock and to focus its business on advances supporting housing finance and community development.
To assure the Bank has sufficient time to meet the request, the FHFA has provided the Bank 120 days to develop and submit the requested material. During this period, FHFA will maintain the Bank’s "undercapitalized" classification absent further developments, and the accompanying restrictions will remain in place.
Corinne Russell (202) 649-3032 / Stefanie Johnson (202) 649-3030