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First Privately Insured Credit Union Approved for FHLB Membership

We are pleased to report that after six months of working with various FHLBanks and their provident regulator the Federal Housing Finance Agency (FHFA), the first privately insured credit union has been approved for membership in the FHLB System. On June 3, 2016, ASI-insured Beacon Credit Union ($1.2 Billion) of Wabash, Indiana, received confirmation that it was approved to become a member, purchase stock and do business with the FHLB of Indianapolis. And, based on our information, various other privately insured credit unions in Ohio, Illinois, Indiana, Texas and California have also filed applications for membership that are currently being processed through their respective FHLBanks. FHLB

Since February, American Share has been diligently working with leaders of the seven FHLBanks positioned to serve our member credit unions nationwide to assure their full understanding of private share insurance, privately insured credit unions and American Share’s role in the oversight of privately insured credit unions. Most recently, on May 23, 2016, American Share executives met in Chicago with two dozen FHLB credit management professionals from six of the seven affected FHLBanks. Our takeaway from the meeting was that the individual FHLBanks seem anxious to implement this new power afforded privately insured credit unions following the enactment of The FAST Act (H.R. 22) in December 2015, and that they look forward to serving this pool of potential new members.

American Share had pursued this change in federal law for almost two decades for the benefit of our member credit unions. Further, while rules are expected to be proposed by the FHFA to aid the FHLBanks in implementing the FHLB membership provisions of H.R. 22, the federal agency’s cooperation to date has been exceptional.

I encourage all of our member credit unions involved in mortgage lending to investigate the value of this hard-earned right and the benefits of membership in their respective FHLBank. Management has always believed that FHLB membership provides a low-cost resource for funding our insured credit unions’ mortgage programs while offering them an invaluable liquidity resource under reasonable terms and conditions.

To better understand the requirements of FHLB membership and the application process, please contact the FHLBank serving your market. Contact information on each of the seven affected FHLBanks can be found at, or via the Links section under the Credit Union Resources tab of our website,

June 9, 2016