Qualified Thrift Lender

lender that follows guidelines of the 1989 Financial Institutions Reform, Recovery and Enforcement Act for mortgage lenders specializing in home mortgage finance. In exchange for holding 65% of their portfolio in residential mortgages or mortgage-backed securities, such lenders may borrow funds from their district Federal Home Loan Bank. Savings and loans, commercial banks and credit unions can also affiliate with Federal Home Loan Banks as qualified thrift lenders.

A lender who specializes in home mortgage finance under the rules established by Firrea. One requirement is that the lender hold at least 65% of its portfolio in qualified assets such as residential mortgage loans and mortgage-backed securities. Qualifying lenders are eligible for advances from the district Federal Home Loan Bank.
Example: Commercial banks and credit unions, in addition to savings and loan associations, can enjoy the privileges of affiliation with the Federal Home Loan Banks by becoming qualified thrift lenders.