Become a Member
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Membership Application Need to Knows
Learn about the essentials every member should know to make the most of their partnership with FHLBank Chicago.
Our member services offer a secure and cost-effective way to manage your accounts, assets, and transactions.
- Daily Deposit Investment Accounts – simplify your cash management
- Wire Transfers – all services here earn interest on collected funds, and are offered at competitive rates, exclusively for our members
- Repetitive, internal, non-repetitive, and direct wire transfers are offered, along with drawdown requests
- Safekeeping – ensure your assets are protected with our many safekeeping services
- Securities on deposit, income earned on securities, settlement of securities, with month-end market value & current value of each security included in monthly account statements
Financial institutions that qualify for membership in FHLBank Chicago include:
- Banks
- Community development financial institutions (CDFIs)
- Credit unions
- Insurance companies
- 10 percent rule: An insured depository institution, other than a community financial institution, also must have at least 10 percent of its total assets in residential mortgage loans
- Non-federally insured credit unions: Non-federally-insured credit unions must provide FHLBank Chicago a copy of the letter from their state regulator that either the credit union meets the eligibility requirements of federal share insurance or that the regulator cannot or will not make a determination regarding the credit union's eligibility for federal share insurance
- Non-insured depository institution's commitment to housing: An applicant that is not an insured depository institution also must have mortgage-related assets that reflect a commitment to housing finance
- Definition of insurance company: An insurance company is eligible to apply for membership if it holds an insurance license or charter under the laws of a State and whose primary business is the underwriting of insurance for persons or entities that are not its affiliates
In order to be eligible to apply for FHLBank Chicago membership, your institution must have its principal place of business in either Illinois or Wisconsin and must satisfy the eligibility requirements. The eligibility requirements for membership in the Federal Home Loan Bank System are available in the Code of Federal Regulations. The requirements are summarized below.
- Duly organized: The institution is chartered by a State or federal agency, or in the case of a CDFI, is incorporated under State or tribal law
- Subject to inspection and regulations: The institution is subject to inspection and regulation under the banking laws, or under similar laws, of any State or of the United States or, in the case of a CDFI, is certified by the CDFI Fund
- Makes test: The institution either originates or purchases long-term home mortgage loans
- Financial condition: Its financial condition is such that advances may be safely made to it
- Character of management: The character of its management is consistent with sound and economical home financing
- Home financing policy: Its home financing policy is consistent with sound and economical home financing
Member Benefits
Liquidity & Funding Solutions
- A reliable source of liquidity
- Funding to meet business objectives and generate growth
- Flexible funding structures to manage interest rate and other risks
- Enhance investment yields through robust liquidity management
- Term funds with maturities of 10 years or longer
- Irrevocable letters of credit, providing a low-cost and efficient way to attract and secure agreements with third parties
Community & Program Support
- Access to the MPF® Program, FHLBank Chicago's mortgage finance alternative
- Support match-funding programs
- High-quality deposit and non-credit services
- Community investment and affordable housing programs to finance your community lending at a lower marginal cost
FAQs
Find answers to your most pressing FHLBank Chicago questions.
FHLBank Chicago is a government-sponsored enterprise and one of 11 Federal Home Loan Banks (FHLBanks) that, along with the Office of Finance, comprise the Federal Home Loan Bank System. FHLBanks were established in 1932, and today provide reliable, short-term liquidity and long-term funding to support housing finance and community investment to nearly 6,500 financial institutions across the United States. Each FHLBank operates as an independent private entity with its own management, employees and Board of Directors. FHLBanks are supervised and regulated by the Federal Housing Finance Agency (FHFA), an independent federal agency in the executive branch of the U.S. government.
Each FHLBank is a privately capitalized, member-owned cooperative with members from a congressionally defined geographic district. Our district consists of the states of Illinois and Wisconsin, and our membership is comprised of commercial banks, credit unions, insurance companies, savings institutions and community development financial institutions (CDFIs). We do business with our members by providing liquidity and funding in the form of advances (secured loans) and letters of credit, and through member participation in our Mortgage Partnership Finance (MPF) Program. We also operate our MPF Program in support of other FHLBank members across the country. Delivering on our liquidity mission drives our ability to invest in our members’ communities by providing grants, discounted advances and other products and programs that support affordable housing and community development.
FHLBank Chicago is a wholesale bank established to support mortgage lending and community investment. We provide liquidity to member institutions in Illinois and Wisconsin. Our goal is to meet the unique needs of each community we serve.
What Our Members Are Saying
Tim Schinkten
AVP, Loan Servicing Manage, Nicolet National Bank
Sandy DeMond
SVP, Director of Community Banking, Busey Bank
Brian Gansauer
Community Bank President, Southern Illinois Region, Peoples National Bank
Nick Brooks
Chief Lending Officer, IAA Credit Union
How We Support Homebuyers
Downpayment Plus® Programs
Downpayment Plus (DPP®) and Downpayment Plus Advantage® (DPP Advantage®) offer members easy-to-access down payment and closing cost assistance to help their income-eligible customers achieve homeownership.
Mortgage Partnership Finance® Program
The Mortgage Partnership Finance® (MPF®) Program provides our members with competitive secondary market options through a selection of mortgage product offerings.