WASHINGTON (1/15/15)--Four Representatives have introduced a bill that would allow privately insured credit unions to apply for membership with the Federal Home Loan Bank (FHLB). The Capital Access for Small Community Financial Institutions Act of 2015 (H.R. 299) was introduced by Reps. Steve Stivers (R-Ohio), Joyce Beatty (D-Ohio), Pat Tiberi (R-Ohio) and Andre Carson (D-Ind.) Tuesday.
"The Credit Union National Association thanks Reps. Stivers, Beatty, Tiberi and Carson for introducing H.R. 299, the Capital Access for Small Community Financial Institutions Act of 2015," said Jim Nussle, president/CEO of CUNA. "Credit unions face steep regulatory burden and this CUNA-backed legislation is an important step in the right direction."
The bill would correct a drafting error from the 1989 legislation that opened the FHLB system to commercial banks and federally insured credit unions. It would allow the 130 privately insured credit unions around the country to access additional liquidity.
Nussle sent a letter to Stivers Wednesday expressing support for the legislation and thanking the legislation for his continued leadership on the issue.
CUNA previously supported the bill when it was introduced by Stivers and Beatty in the 113th Congress. In that Congress the bill passed the House Financial Services Committee by a 55-0 vote and passed the full House by a 395-0 vote.
The association has also been active in is opposition to a proposal from the Federal Housing Finance Agency that would make changes to the membership requirements in the FHLB program.
The proposal would add new requirements to maintain FHLB membership, requirements CUNA believes will prevent credit unions from accessing a much-needed source of liquidity.