The Federal Housing Finance Agency (FHFA) this week released an update on implementation of recommendations for the Federal Home Loan Bank (FHLBank) system from its FHLBank report published in November. According to the FHFA, the recommendations in the report are designed to ensure that the FHLBanks are well-positioned to continue delivering on their mission priorities.
America’s Credit Unions’ legacy organizations engaged with FHFA throughout the process, and the report contains several credit union recommendations, including increasing support for “mission-oriented” organizations such as Community Development Financial Institutions (CDFIs).
This week’s action is a regulatory interpretation clarifying how cooperativas in Puerto Rico can pursue membership in the FHLBank system. Cooperativas are a type of state-chartered credit union organized under the laws of the Commonwealth of Puerto Rico.
“Cooperativas are a critical part of the financial system in Puerto Rico, and many are Treasury-certified CDFIs,” the FHFA said in its release, adding that no cooperativa is an FHLBank member to date.
Following publication of the report, FHFA also published an Advisory Bulletin communicating its expectation that each FHLBank establish a framework for pilot and voluntary programs.
According to the agency, key priorities in 2024 include:
- Clarifying the FHLBank System mission;
- Aligning eligibility requirements for different types of FHLBank members; and
- Streamlining requirements related to the Affordable Housing Program.
