When it comes to housing finance, few would deny the importance and effectiveness of the Federal Home Loan Bank System. The FHLBs serve as an important source of capital and should be part of the dialogue as we decide the future of Fannie Mae and Freddie Mac. However, given the exclusivity of its members, the FHLB system is failing to serve the marketplace as well as it could.

Let's be realistic. The FHLB system was created in the 1930s and today we live in a completely different financial world. The global economy is constantly changing and only getting more complicated. Thus, it is time to re-examine the various rules and regulations that govern our financial institutions.

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