SAN FRANCISCO, June 28, 2018 (GLOBE NEWSWIRE) -- The Federal Home Loan Bank of San Francisco announced today that it may stop publishing three cost of funds indices in 2020 because of the significant decline in the number of financial institutions eligible to report the data used to calculate the indices.
The Bank publishes three cost of funds indices: the 11th District Monthly Weighted Average Cost of Funds Index (COFI), the Semiannual Weighted Average Cost of Funds Index for the 11th District, and the Semiannual Weighted Average Cost of Funds Index for California. The 11th District of the Federal Home Loan Bank of San Francisco is made up of Arizona, California, and Nevada.
The Bank would like to avoid discontinuation of the indices on short notice, which could occur if there were a further drop in the number of financial institutions eligible to provide cost of funds data. The Bank believes that setting a discontinuation date for the indices well in advance would allow lenders and other users that may have mortgage loans tied to one or more of the indices sufficient time to prepare for an orderly transition.
When the monthly and semiannual indices were originally developed, there were over 200 savings institutions, known as “COFI Reporting Members,” that reported their cost of funds data to the Bank for inclusion in the calculation of the indices. Today there are only 9 financial institutions that are COFI Reporting Members.
Only savings institution members of the Bank that meet certain criteria are included in the index. In 1998, the Bank discontinued the semiannual index for Nevada because there were no savings institutions headquartered in Nevada. In 2008, the Bank discontinued the semiannual index for Arizona because there was only one savings institution headquartered in Arizona.
Federal Home Loan Bank of San Francisco
The Federal Home Loan Bank of San Francisco delivers low-cost funding and other services that help member financial institutions make home mortgage loans to people of all income levels and provide credit that supports neighborhoods and communities. The Bank also funds community investment programs that help members create affordable housing and promote community economic development. The Bank’s members are headquartered in Arizona, California, and Nevada and include commercial banks, credit unions, industrial loan companies, savings institutions, insurance companies, and community development financial institutions.
CONTACT: Amy Stewart, 415-616-2605 (office), 415-308-8959 (mobile), stewarta@fhlbsf.com