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NAFCU emphasized the importance of allowing credit unions access to Federal Home Loan Banks and raised concerns about proposed FHLB membership rule changes in a letter to House Financial Services Committee leaders in advance of today's hearing with FHFA Director Mel Watt.

NAFCU Senior Vice President of Government Affairs and General Counsel Carrie Hunt, writing panel Chairman Jeb Hensarling, R-Texas, and Ranking Member Maxine Waters, D-Calif., said credit union membership in FHLBs has risen from 11.4 percent in 2007 to 19 percent today, but FHFA's proposed rule could reverse that trend over time.

"This growth of credit union membership in FHLBs only underscores the need to ensure that the eligibility requirements for membership in FHLBs are set appropriately," Hunt wrote. "Unfortunately, this proposal would disenfranchise over one million credit union member-owners from receiving the benefits of FHLB resources as their institution's membership would be terminated under the newly proposed requirements."

NAFCU shared these same concerns with the FHFA in a letter last week.

Hunt also reiterated NAFCU's warning that raising guarantee fees, or g-fees, on loans guaranteed by Fannie Mae and Freddie Mac "would result in a negative impact on the housing market." She urged that the fees be kept at the same level or reduced.

Today's hearing begins at 10 a.m. Eastern.