Page 429 - FY 2026-2027 Adopted Budget Book

supply funds for home mortgages through
DISCOUNT SECURITIES: Non -interest - continuous purchases of mortgages from
bearing instruments that are issued or lending institutions. On September 7, 2008,
purchased at a discount and redeemed at the Federal Housing Finance Agency
maturity for full face value, e.g., U.S. (FHFA), announced that Fannie Mae and
Treasury Bills. Freddie Mac were being placed into
conservatorship of the FHFA. The action
DIVERSIFICATION: Dividing funds among was "one of the most sweeping
a variety of investments allowing the government interventions in private
investor to spread risks to a broader issuer financial
array.

FEDERAL FARM CREDIT BANKS (FFCB):
A
government -sponsored corporation that
was created in 1916 and is a nationwide
system of banks and associations
providing mortgage loans, credit, and
related services to farmers, rural
homeowners, and agricultural and rural
cooperatives. The banks and associations
are cooperatively owned, directly or
indirectly, by their respective borrowers.
The Federal Farm Credit System is
supervised by the Farm Credit
Administration, an independent agency of
the U.S. government.

FEDERAL DEPOSIT INSURANCE
CORPORATION (FDIC): A federal agency
that insures bank deposits, currently up to
$250,000 per deposit.

FEDERAL FUNDS RATE: The rate of
interest at which Fed funds are traded. This
rate is currently pegged by the Federal
Reserve through open - market operations.

FEDERAL HOME LOAN BANKS (FHLB):
Government -sponsored wholesale banks
which lend funds and provide
correspondent banking services to
member commercial bank, thrift
institutions, credit unions and insurance
companies. The mission of the FHLBs is to
liquefy the housing related assets of its
members who must purchase stock in their
district Bank.

FEDERAL HOME LOAN MORTAGE
CORPORATION (FHLMC or Freddie Mac):
A
U.S. government -sponsored private
corporation whose chief function is to