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FOR IMMEDIATE RELEASE

NAFCU Applauds FHFA's 60-Day Comment Period Extension on FHLB's Membership Criteria

Washington (Oct. 6, 2014) - National Association of Federal Credit Unions (NAFCU) Senior Vice President of Government Affairs and General Counsel Carrie Hunt today applauded Federal Housing Finance Agency (FHFA) Director Mel Watt's approval of a NAFCU-sought, 60-day extension of the comment period on a proposal affecting membership criteria for the Federal Home Loan Banks (FHLBs).

"We appreciate Director Watt's leadership and thoughtful consideration of credit unions' concerns regardingthis proposal in extending this comment period to January 2015," said Hunt. "We also appreciate the support of Senate Banking Chairman Tim Johnson, D-S.D., and Ranking Member Mike Crapo, R-Idaho, in this matter."

NAFCU last month wrote to Watt seeking a 60-day extension of the comment period.The FHFA proposal would require FHLB members and applicants to keep 1 percent of assets in home mortgage loans and 10 percent in residential mortgage loans. Currently, the 10 percent requirement only applies when an applicant first seeks membership in an FHLB.Nineteen percent of federally-insured credit unions are FHLB members and that number continues to grow.NAFCU requested the extension because of the complexity of the rule, and the significant impact the rule could have on the industry and credit unions ability to establish and maintain membership in FHLBs.

Chairman Johnson and Ranking Member Crapo had also written the agency with a similar request. Watt wrote the senators Monday confirming the change, and FHFA posted an announcement on its website.

NAFCU met with FHFA last week to discuss the proposed rule.

The National Association of Federal Credit Unions is the only national trade association that exclusively represents the interests of federally chartered credit unions before the federal government and the public.

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Contact: Patty Briotta | 703-842-2820 | pbriotta@nafcu.org