The United Food and Commercial Workers International Union (UFCW) is calling for reforms to the Federal Home Loan Bank System (FHLB) to better address the housing crisis affecting retail workers. In a recent comment letter, UFCW criticized the FHLB for focusing its substantial government-subsidized resources on enriching large financial firms, such as Apollo’s Athene Annuity & Life, rather than on urgent affordable housing needs.
“Apollo exemplifies the problems with the Federal Home Loan Banks,” stated UFCW. “Retail workers, including those at Cardenas Markets, need these government-sponsored banks to prioritize affordable housing, not to boost Apollo’s investment profits.”
According to UFCW’s letter, Apollo Global Management illustrates how FHLBanks have deviated from their core housing mission. Athene Annuity, owned by Apollo, is the second-largest borrower from the FHLBank of Des Moines, with $7.6 billion in government-subsidized loans as of March 31, 2024.1
In contrast, retail workers, including those employed by Cardenas Markets—a company under Apollo’s ownership—struggle with housing affordability, as highlighted by UFCW.
“Apollo highlights the issues with the Federal Home Loan Banks,” said Courtney Alexander, a UFCW researcher. “Retail workers, such as those at Cardenas Markets, need these banks to focus on financing affordable housing rather than boosting Apollo’s investment returns.”
To ensure that the $1.3 trillion FHLB System effectively addresses the nationwide housing crisis, UFCW proposed several recommendations:
- Clarify FHLBanks’ Mission: Define the mission to provide liquidity specifically for unmet housing needs, rather than for liquidity’s sake.
- Link Loans to Housing Mission: Require that FHLBanks’ government-subsidized loans be directly tied to promoting affordable housing.
- Rulemaking for Borrowers: Consider rules to prevent entities with offshore parent companies from borrowing from FHLBanks, ensuring that benefits remain within the U.S.
UFCW also expressed support for the Coalition for FHLB Reform, which advocates for a set of recommendations to realign FHLBanks’ mission with affordable housing goals.
UFCW’s letter was submitted in response to the Federal Housing Finance Agency’s (FHFA) Request for Input on FHLB’s Core Mission Activities, and the union thanked FHFA for its review of the FHLB’s mission in its centennial year.
1 Federal Home Loan Bank of Des Moines, SEC Form 10-Q, 3/31/2024, p. 50. Link to document.
