WASHINGTON (10/7/14)--The Federal Housing Finance Agency (FHFA) said Monday that due to the number of requests it received and the importance of the issue, it would extend the comment period for its proposal to change membership requirements to the Federal Home Loan Bank (FHLB) program by 60 days.
Comments are now due to the agency by Jan. 12, 2015.
The proposal would require all credit union members in the FHLB system to hold 10% of assets in residential mortgages on an ongoing basis, in addition to other changes (News Now Sept. 3).
According to a statement released by the FHFA, "multiple stakeholders asked for more time to evaluate the proposed rule" and the Credit Union National Association was prominently among them.
In a letter to the FHFA, CUNA advocated for the additional 60 days, saying it is "needed to ensure a more open dialogue" concerning the proposal.
CUNA warned the proposed changes "could create significant barriers to credit union membership in FHLBs" and went on to cite the critical role FHLBs play as a source for credit union liquidity.
CUNA also underscored its deep concerns that credit unions be given membership parity with small banks that are not required to maintain the 10% threshold on an ongoing basis in order to retain their FHLB membership.
Members of the Senate Banking Committee reflected many of CUNA's points when they also sought an extended comment period, saying that "any change to [FHLB] membership criteria should only be undertaken after thorough consideration."
Use the resource links below to access the proposed rule, as well as previous News Now coverage on the FHLB proposed rule.