A bill that would allow privately insured credit unions access to the Federal Home Loan Bank system has been introduced in the House.
H.R. 6105, introduced Wednesday by Rep. Steve Stivers (R-Ohio) and cosponsored by Rep. Andre Carson (D-Ind.), would amend the Federal Home Loan Bank Act so credit unions that are not federally insured can take advantage of FHLB services.
Currently, only federally insured credit unions can access the FHLB’s low-cost, secured borrowings. To be eligible, a credit union must purchase stock, either originate or purchase long-term mortgages and, among other things, have at least 10% of total assets in residential mortgage loans.
Only nine states allow their state-chartered credit unions to have private deposit insurance only: Alabama, California, Idaho, Illinois, Indiana, Maryland, Nevada, Ohio and Texas.
H.R. 6105 has been referred to the House Financial Services Committee, where Stivers serves on the insurance subcommittee.
Stivers received industry support during his 2010 election from CULAC. The CUNA PAC provided partisan communications during his campaign.