The United Food and Commercial Workers International Union (UFCW) is urging regulators to reform the Federal Home Loan Bank System (FHLB) to address the housing crisis retail workers face. In a comment letter about FHLB’s mission, UFCW argued that the vast resources of government-subsidized FHLBanks should be used to address urgent affordable housing needs, instead of enriching big insurance companies, like Apollo’s Athene Annuity & Life.

According to UFCW’s comment letter, Apollo Global Management is an example of how FHLBanks have strayed far from their housing mission. Athene Annuity, wholly owned by Apollo, is the second largest borrower from the FHLBank of Des Moines, with $7.6 billion outstanding in government-subsidized loans as of March 31, 2024.¹

By contrast, retail workers like those who work for Cardenas Markets, another Apollo-owned company, struggle to afford housing, as UFCW’s letter explains.

“Apollo is an example of what’s wrong with the Federal Home Loan Banks,” said Courtney Alexander, a UFCW researcher. “Retail workers, including those at Cardenas Markets, need these government-sponsored banks to finance affordable housing, not boost Apollo’s investment gains.”

To see FHLBanks live up to their housing mission and generous government subsidy, UFCW proposed several recommendations that are aimed at making sure all the resources of the $1.3 trillion FHLB System are brought to bear on the ongoing nationwide housing crisis.

The main recommendations include:

1. Clarify that the FHLBanks mission is to provide liquidity for unmet housing needs, not for liquidity’s sake.
2. Require that FHLBanks’ government-subsidized loans to members be tied directly to a renewed affordable housing mission.
3. Consider rulemaking to prevent entities that have offshore parent companies from borrowing from FHLBanks, in order to keep all the benefits of this taxpayer-supported system in the United States.

Additionally, UFCW is proud to stand with housing, consumer, and racial equity groups as a member of the Coalition for FHLB Reform, which has proposed a suite of recommendations to refocus FHLBanks’ affordable housing mission.

UFCW’s letter, submitted in response to FHFA’s Request for Input: Federal Home Loan Banks Core Mission Activities, thanks the Federal Housing Finance Agency for initiating its centennial review of FHLB’s mission.

¹ Federal Home Loan Bank of Des Moines, SEC Form 10-Q, 3/31/2024, p. 50. https://www.sec.gov/Archives/edgar/data/1325814/000132581424000087/fhlbdm-20240331.htm

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“Apollo is an example of what’s wrong with Federal Home Loan Banks,” says UFCW. “Retail workers, including those at Cardenas Markets, need these government-sponsored banks to finance affordable housing, not boost Apollo's investment profits."