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FHLB Membership Approvals Continue for Privately Insured Credit Unions

Last week we reported the first of our member credit unions as being approved for membership in the Federal Home Loan Bank of Indianapolis, and today we are excited to report the second such event, but this time from an Illinois-based privately insured credit union, Credit Union 1. We have been advised that this $785 million ASI-insured member credit union recently received word of its approval from the FHLB of Chicago.

This is very encouraging news and is helpful in establishing a framework for other FHLBanks to follow in considering ASI-insured credit unions applying for membership as FHLBa result of American Share’s success in passing its long-lobbied legislation in Congress last year (H.R. 22). We believe that various other privately insured credit unions in Ohio, Illinois, Indiana, Texas and California have also filed applications for membership that are currently under consideration by the FHLBank serving their respective markets.

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 encourages all 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 marketplace. 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 16, 2016