CUs need to be included in the FHFA’s proposed small member goal

CUNA wrote to the Federal Housing Finance Administration (FHFA) Tuesday opposing its proposed Federal Home Loan Bank (FHLB) affordable housing goals regulations because they specifically exclude credit unions from being eligible to participate in the newly created smaller member participation goal. CUNA sent its comment letter in response to FHFA’s proposed regulation on its affordable housing goals.

“As a result [of credit unions being excluded], thousands of credit unions—all members of the Federal Home Loan Banking System— would be ineligible to participate in at least 50% of all purchases under the Acquired Mortgage Asset Program,” the letter reads. “Though many credit unions are small FHLB members that play a vital role in the mortgage markets and rely upon their FHLBs as partners in achieving the liquidity necessary to provide mortgage credit, they do not satisfy the proposal’s definition of a community financial institution.”


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