The condition and performance of half the Federal Home Loan Bank system is "less than adequate," according to the nation's GSE regulator.

Federal Housing Finance Agency (FHFA) acting director Edward DeMarco, who cited continuing losses on investments in private-label MBS at six regional GSEs, told a congressional panel that he wants to see a gradual reduction in the FHLBs' investment portfolios.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.