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What are Residential Housing Finance Assets (RHFAs), and how do they affect my borrowing position?

April 26, 2017affect assets Borrowing Finance HOUSING position Residential

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What are Residential Housing Finance Assets (RHFAs), and how do they affect my borrowing position?

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Any advance with a term greater than five years must be supported by an institution’s RHFAs. Advances exceeding five years are considered long term and can only be made for the purpose of enabling a member to purchase or fund new or existing Residential Housing Finance Assets. As a result, the sum of an institution’s advances with original maturities greater than five years cannot exceed the sum of the RHFAs held by the institution.