The paperwork for the approval of the merger of the Federal Home Loan Bank of Des Moines and the Federal Home Loan Bank of Seattle is now official, the Federal Housing Finance Agency announced on Monday.
“As the regulator of the Federal Home Loan Bank System, FHFA views this voluntary merger as consistent with safety and soundness and with the mission of the system to support home mortgage lending and community investment,” FHFA Director Mel Watt said.
“The members and the public should feel confident that the bank that resulted from the merger, which will be called the Federal Home Loan Bank of Des Moines, remains financially strong and committed to meeting its statutory purposes,” said Watt.
Talks of the merger first hit the wires back in July of 2014. The combined entities would provide funding solutions for more than 1,500 member financial institutions in 13 states.
"The members of FHLB Des Moines and FHLB Seattle would become members of a combined institution that, in our view, would be in a stronger financial position than if both Banks were to remain stand-alone entities,” said Michael Wilson, FHLB Seattle president and CEO, at the time.
“We also believe that the combined Bank would be better able to maintain an appropriate mission focus and strong financial condition in the long run through the challenges of different economic cycles and regional economic conditions," he added.