President Obama Signs Legislation Approving FHLB Membership
On December 4, 2015, President Obama signed into law The FAST Act (H.R. 22)–a major $300 billion federal transportation and highway funding bill that was well vetted by U.S. House and Senate conferees in November before passing both chambers by an overwhelming majority on December 3, 2015. ASI is extremely pleased to report that a legislative change to the Federal Home Loan Bank Act–permitting privately insured credit unions the same rights to membership in the FHLB as afforded all other financial institutions–was included in this heavily-debated 1,300-page bill.
With the passage of The FAST Act, effective immediately, privately insured credit unions like banks, thrifts and federally insured credit unions may apply for membership in their local branch of the FHLB System. The change in the FHL Bank Act affords qualifying privately insured credit unions a low-cost source of funding to assist in their social mission of helping their members realize home ownership and a liquidity resource that has all but evaporated on the heels of the corporate credit union restructuring.