Savings and Loan Associations: Changes Needed in the Regulation of Their Service Corporations

Federally chartered savings and loan associations were authorized to invest in service corporations by the Congress in 1964. Service corporations provide savings and loan associations with numerous ways of increasing revenues and profits from investments related to housing or complementary to the operations of associations. The Federal Home Loan Bank Board (FHLBB) regulates and supervises federal savings and loan associations' investments in service corporations.