Federal Home Loan Bank Of Dallas: A Reliable Source of Funding for Housing in Texas and Beyond

The Federal Home Loan Bank of Dallas (FHLB Dallas) is a financial institution that provides funding and other services to its members, who are mostly banks, thrifts, credit unions, and insurance companies. Established in 1932, FHLB Dallas is a member-owned cooperative that operates under the supervision of the Federal Housing Finance Agency (FHFA), which is an independent agency of the federal government.

What Does FHLB Dallas Do?

FHLB Dallas has two main functions: to provide low-cost funding to its members and to support affordable housing and economic development initiatives in its district, which includes Arkansas, Louisiana, Mississippi, New Mexico, and Texas. The bank raises funds by issuing debt securities, such as bonds and notes, in the capital markets, and then lends those funds to its members at competitive rates. Members use the funds to make loans to consumers, businesses, and communities, such as mortgages, small business loans, and infrastructure projects.

In addition to funding, FHLB Dallas offers other services to its members, such as cash management, interest rate hedging, and correspondent banking. It also operates several grant programs that provide funds to its members or their nonprofit partners for affordable housing and economic development projects that benefit low- to moderate-income households and communities. These programs include the Affordable Housing Program, the Homeownership Set-Aside Program, and the Community Investment Program.

What Are the Benefits of Membership?

Membership in FHLB Dallas is a valuable asset for financial institutions that want to expand their lending capacity, manage their liquidity, and enhance their community reinvestment activities. Members have access to a reliable source of funding that is not subject to the same market fluctuations and regulatory constraints as other sources of funding, such as deposits and wholesale funding. They also have access to a range of products and services that can help them manage their balance sheets and optimize their profitability.

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Membership in FHLB Dallas is also a way for financial institutions to demonstrate their commitment to affordable housing and economic development, which are important public policy goals. By working with FHLB Dallas and its nonprofit partners, members can leverage their resources to make a positive impact on their communities and enhance their reputation as responsible corporate citizens.

Who Can Join?

To become a member of FHLB Dallas, a financial institution must meet certain eligibility criteria, such as being chartered under federal or state law, having a satisfactory regulatory rating, and being in sound financial condition. Members must also purchase and hold a minimum amount of FHLB Dallas stock, which represents their ownership in the bank and entitles them to vote in the election of directors and other matters.

Membership in FHLB Dallas is open to a wide range of financial institutions, including commercial banks, savings and loan associations, credit unions, and insurance companies. Nonprofit organizations and government entities are also eligible to become members if they meet certain criteria and have a financial institution as a sponsor.

How Does FHLB Dallas Support Affordable Housing and Economic Development?

FHLB Dallas supports affordable housing and economic development through its grant programs and other initiatives that promote community development and revitalization. These programs provide funds for a variety of activities, such as the construction, rehabilitation, or acquisition of affordable housing units; down payment and closing cost assistance for first-time homebuyers; home repairs and weatherization for low-income households; and commercial and industrial development projects that create jobs and enhance the tax base.

For example, the Affordable Housing Program provides grants and subsidized loans to members or their nonprofit partners for the development of rental, homeownership, or transitional housing units that serve households with incomes at or below 80% of the area median income. The Homeownership Set-Aside Program provides funds for down payment and closing cost assistance to first-time homebuyers who meet certain income and other criteria.

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The Community Investment Program provides grants and subsidized loans for economic development projects that promote job creation and retention, small business development, and infrastructure improvements. The program also supports community facilities, such as schools, hospitals, and community centers, that provide essential services to low- to moderate-income households and communities.


FHLB Dallas is a vital source of funding and support for its members and the communities they serve. By working together, FHLB Dallas and its members can help address the critical need for affordable housing and economic development in Texas and beyond. If you are a financial institution that wants to enhance your lending capacity and community reinvestment activities, consider becoming a member of FHLB Dallas today.