FHFA today recognized the inevitable and, like the banking agencies before it, bowed its head and conceded to community banks. It thus carved them out of its final FHLB-membership rule. Not the MREITs, which did not win continued access to the System through their captive reinsurers despite fervent lobbying that won even a White House official to side with them.

The full report is available to subscription clients. To find out how you can sign up for the service, click here.