The Federal Housing Finance Agency (FHFA) has released its comprehensive report on the Federal Home Loan Bank (FHLBank) system. CUNA engaged with the FHFA throughout the process on the benefits credit union members see from credit union membership in the FHLBank system, and the report contains several of CUNA’s recommendations.
According to the FHFA, the recommendations in the report are designed to ensure that the FHLBanks are well-positioned to continue to deliver on their mission priorities.
“We appreciate the FHFA undertaking a comprehensive review of the FHLBank System, and for reflecting on how the FHLBank System can best serve its members and their communities,” said CUNA Deputy Chief Advocacy Officer for Federal Government Affairs Jason Stverak. “We strongly believe credit unions must have equal access to liquidity provided by the FHLBanks, and we look forward to working together with FHFA, the FHLBanks, and other stakeholders to make sure that the FHLBank System continues to meet the needs of its credit union members and their communities moving forward.
Other language of interest to credit unions included in the report includes:
- Recommendations to increase support for “mission-oriented” organizations including Community Development Financial Institutions (CDFIs).
- A recommendation that Congress amend the FHLBank Act to authorize all CDFI and credit union members with assets below the statutory cap to pledge CFI collateral to secure FHLBank advances.