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FOR IMMEDIATE RELEASE | May 21, 2015

NAFCU Applauds Reps. Clay, Neugebauer Introduction of FHLB Legislation That Would Grant Credit Unions Parity with Banks


FOR IMMEDIATE RELEASE

NAFCU Applauds Reps. Clay, Neugebauer Introduction of FHLB Legislation That Would Grant Credit Unions Parity with Banks


Washington (May 21, 2015) - National Association of Federal Credit Unions (NAFCU) Vice President of Legislative Affairs Brad Thaler today lauded the legislation introduced by Reps. William Lacy Clay, D-Mo., and Randy Neugebauer, R-Texas, the ranking member and chairman of the House Financial Institutions and Consumer Credit Subcommittee, that would grant credit unions parity with banks under Federal Home Loan Bank membership criteria - a move backed by NAFCU.

"We thank Chairman Neugebauer and Ranking Member Clay for their leadership on this issue," said Thaler. "Many credit unions look to the Federal Home Loan Banks for mortgage liquidity, and this bill would help ensure that access. We look forward to working with the lawmakers and their staffs toward enactment of this important measure."

The bill would revise the Federal Home Loan Bank Act definition of a "community financial institution" to include small credit unions - those with less than $1.1 billion in assets. The statutory change would ensure credit unions parity under any final rule changes by the Federal Housing Finance Agency in the FHLB membership criteria.

FHFA has proposed changes in the criteria that would, among other things, require FHLB member institutions - all except "community financial institutions" - to maintain at least 10 percent of their assets in residential mortgage loans on an ongoing basis. Current rules apply this threshold only at application for FHLB membership. NAFCU raised concerns about the proposal in January.

A similar provision was included in the Financial Regulatory Improvement Act passed by the Senate Banking Committee on Thursday.

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