Located in Reston, VA, a suburb of Washington, D.C., the OF is operated on behalf of the Federal Home Loan Banks (FHLBanks). Its primary function is to issue and service all debt securities for the regional FHLBanks, while obtaining the most cost-effective terms possible given current market conditions. Related activities include the compilation and publication of the combined financial statements, analysis and joint development of new funding opportunities, and educational outreach to inform investors and other interested parties about FHLBank debt products. The OF also provides the FHLBanks with credit and general capital market information/data and manages the relationship with the credit rating agencies. In addition, the OF administers two tax-exempt government corporations, the Financing Corporation and the Resolution Funding Corporation.
As an agent of the FHLBanks, the OF is a unique organization. While it is the size of a small business, it has access to the resources, and shoulders the responsibilities, of a large corporation. The OF does not have the drivers of a traditional business, such as a P&L or equity value. Rather, its staff and leaders derive their satisfaction from tackling the diverse challenges of serving the FHLBanks, individually and as a System, as well as managing dealer and investor relationships — all while remaining keenly focused on its day-to-day core mission.
The FHLBanks and the OF are government-sponsored enterprises regulated by the Federal Housing Finance Agency.