This year marks the 90th anniversary of the creation of the Federal Home Loan Bank System. Established at the height of the Great Depression through the Federal Home Loan Bank Act of 1932, the system is composed of 11 regional FHLBanks and serves 6,500 members, including many financial institutions in Utah. Today, nine decades later, FHLBanks across the U.S. continue to champion community-focused lenders, such as Bank of Utah, by providing affordable liquidity. This means we can bring homes and financial stability to our communities and give back in meaningful ways.

As a director for FHLB Des Moines, I am especially proud that our partnership helps ensure our neighbors have a great place to live and work, a place where they can thrive. I’d like to share two examples of how we do that, both of which underscore why the Bank of Utah is celebrating 90 years of FHLB Des Moines’ service.

The Affordable Housing Program Supports Local Housing Needs
Since its creation, the Affordable Housing Program (AHP) has grown to be one of the most successful sources of private funding for affordable housing, providing nearly $7 billion in funding to build or improve 994,000 homes nationally. The state of Utah has utilized $32 million in grant funds to build or improve nearly 5,200 homes.

The program is designed to help local banks and their nonprofit partners develop housing based on the affordable housing or economic development needs in their communities. FHLB Des Moines understands the gaps in the cost of housing versus household incomes across its district. That intimate knowledge provides a great opportunity for the bank to customize grant programs, including helping Utah communities overcome the high cost of housing.

Grant Funds Put People in Homes
Bank of Utah has been a supporter and user of FHLB Des Moines’ services for a long time, and while we appreciate the access to low-cost liquidity and the Mortgage Partnership Finance® Program, we believe the program that makes the most difference in whether or not people can get into a home is the Home$tart® Program.

Through Home$tart, families and individuals receive up to $7,500 in down payment and closing cost assistance to purchase their first home. FHLB Des Moines has awarded $111 million in these types of grants to help more than 20,300 families.

Many of these families would not have had the opportunity to purchase homes without Home$tart. Down payments are hard to save for, especially when the housing market is incredibly competitive. Paying for day-to-day expenses can seem overwhelming. There are too many obstacles and getting a mortgage can feel impossible, but with Home$tart we remove a few of those barriers.

FHLB Des Moines is celebrating a huge milestone, and while congratulations are definitely in order, I would also like to extend a big “thank you” to the FHLBank System. Without our partnership with FHLB Des Moines, we would lose a backstop and stable source of liquidity that I have come to rely on in my 38 years in the banking industry. More importantly, our communities would suffer, and families would not have the opportunities to build a future.

Congratulations on 90 years! Bank of Utah is proud to be a member of the Federal Home Loan Bank of Des Moines.