American Share Press Release – FHFA ISSUES FINAL FHLB MEMBERSHIP RULE FOR PRIVATELY INSURED CREDIT UNIONS
After over 15 years of fighting in Congress for the rights of its member credit unions to have equal access to the Federal Home Loan Bank (FHLB) system, American Share reported today that it was pleased that the Federal Housing Finance Agency (FHFA) – the federal regulator for all 11 FHL Banks nationwide – has issued its final rule (RIN 2590-AA85) governing the process that all FHL Banks are to follow when considering a membership application from a privately insured credit union. In addition, per the rule, federally insured FHLB member credit unions that convert to private share insurance need not reapply following the conversion. Their FHLB membership continues uninterrupted.
“The final rule is to become effective July 5, 2017, but contrary to other public reports, privately insured credit unions have been seeking and securing membership with their respective FHL Banks for over 12 months now,” according to American Share’s President/CEO, Dennis Adams. “Since the FHFA issued its Guidance Letter on April 12, 2016 – about 20 privately insured credit unions have joined their respective FHL Banks, and this final rule solidifies all that we have been working on for the benefit of our members since the December 2015 enactment of The FAST Act (HR 22),” said Adams.
“I am equally pleased to see that the FHFA implemented some of the changes that we had asked for through our comment letter of November 28, 2016 and through other interactions with the FHFA and various FHL Banks dating back to January 2016,” Adams added.
“I would be remiss if I didn’t thank all of American Share’s legislative supporters throughout our long fight to move this legislation, including US House sponsors Steve Stivers (R-OH), Joyce Beatty (D-OH) and Pat Tiberi (R-OH), and US Senate sponsors Rob Portman (R-OH), Joe Donnelly (D-IN) and Sherrod Brown (D-OH),” said Adams.