ADVANCES UNDER FEDERAL HOME LOAN BANK ACT.

SEC. 1392. ADVANCES UNDER FEDERAL HOME LOAN BANK ACT. (a) Advances to Nonqualified Thrift Lender Members.—Section 10(e)(2) of the Federal Home Loan Bank Act (12 U.S.C. 1430(e)(2)) is amended by striking the second sentence and inserting the following new sentence: “The aggregate amount of the advances by the Federal Home Loan Bank System to members that are not qualified thrift lenders shall not exceed 30 percent of the total advances of the Federal Home Loan Bank System.”. (b) Exception to Requirements for Advances.—Section 10b of the Federal Home Loan Bank Act (12 U.S.C. 1430b) is amended— (1) in the first sentence, by inserting before “Each” the following new subsection designation and heading: “(a) In general.—”; and (2) by adding at the end the following new subsection: “(b) Exception.—An advance made to a State housing finance agency for the purpose of facilitating mortgage lending that benefits individuals and families that meet the income requirements set forth in section 142(d) or 143(f) of the Internal Revenue Code of 1986, need not be collateralized by a mortgage insured under title II of the National Housing Act or otherwise, if— “(1) such advance otherwise meets the requirements of this subsection; and “(2) such advance meets the requirements of section 10(a) of this Act, and any real estate collateral for such loan comprises single family or multifamily residential mortgages.”.