Fla. CUs gain FHLB mortgage access in new law
TALLAHASSEE, Fla. (3/29/16)--Florida Gov. Rick Scott Friday signed into law legislation that gives state credit unions the ability to join the secondary market mortgage program from the Federal Home Loan Bank (FHLB) Atlanta.
HB 1233 requires the Florida Office of Financial Regulation (OFR) to enter into an information-sharing agreement with FHLB Atlanta to share examination reports. Without the agreement, state-chartered credit unions could not participate in the FHLB program.
Once the agreement is in place, state-chartered credit unions would allow member credit unions to sell mortgages into the secondary market in a more efficient and cost-effective manner, the League of Southeastern Credit Unions reported (eSignal).
FHLB Atlanta has similar information-sharing agreements with other states.
The legislation becomes effective July 1, and the agreement between OFR and FHLB Atlanta must be executed by Aug. 1. HB 1233 was one of 68 bills the governor signed Friday.