Eligibility

Is My Institution Eligible?
Only regulated, federally insured depositories and insurance companies are eligible to apply for membership in the Federal Home Loan Bank of San Francisco. All members are required to purchase stock in the Bank and meet certain statutory requirements and credit underwriting standards.

The statutory eligibility requirements include:

1. The institution is duly organized under federal or state laws.
2. The institution is inspected and regulated under state or federal banking or similar laws.
3. The institution either originates or purchases long-term home mortgage loans (loans with an original term-to-maturity of five years or more). An institution may also qualify by purchasing and holding mortgage-backed securities representing an undivided interest in long-term home mortgage loans.
4. The institution has at least 10% of its total assets in residential mortgage loans. (Community financial institutions, defined as FDIC-insured depository institutions with average total assets over the preceding three-year period of less than $625 million, are exempt from this requirement).
5. The institution's financial condition is such that the Bank may safely make advances to it based on certain regulatory standards and an overall credit evaluation performed by Bank staff.
6. The character of the institution's management and its home financing policy are consistent with sound and economical home financing.

Insurance Companies
Insurance companies are eligible for membership but are not subject to the 10% requirement.

De Novo Institutions
Because de novo institutions do not have a proven record of operating history, they are subject to modified membership requirements and credit facilities. If your institution is a de novo, please contact one of the Bank’s Relationship Managers to discuss these criteria.

Non-Member Housing Associates
The Bank, in its sole discretion, may extend credit to approved housing associates. An approved housing associate is not a member of the Bank. In general, governmental agencies, authorities, organizations, or publicly sponsored corporations that meet certain Finance Board requirements are eligible to be certified by the Bank as housing associates. Entities chartered as corporations under state, federal, local, or tribal law, may also be eligible.

Certain housing associates that intend to obtain Bank credit for the purpose of facilitating residential or commercial mortgage lending to benefit low-income individuals or families may qualify as state housing finance agencies (SHFAs) as defined by Finance Board regulation, which would allow them to pledge additional types of collateral to secure Bank credit.

The Bank, in its sole discretion, may offer its housing associates many of the same types of credit products that it offers to its members. By Finance Board regulation, however, housing associates are not eligible to participate in or use the following programs:

• Community Investment Program (CIP)
• Affordable Housing Program (AHP)
• Individual Development and Empowerment Account (IDEA) Program
• Workforce Initiative Subsidy for Homeownership (WISH) Program 

Please e-mail the Membership Department for more information..