A Senate bill introduced this week would allow privately insured credit unions to offer loans through the Federal Home Loan Bank system.
Sens. Sherrod Brown (D-Ohio) and Rob Portman (R-Ohio) introduced the CUNA-supported legislation on Thursday.
“Brown and Portman's legislation would provide more than 150 privately insured credit unions in nine states –including Ohio –access to additional forms of liquidity through membership in the FHLB system,” said a press release from the senators' offices.
Under current law, non-federally insured credit unions are prohibited from participation due to a 1989 statutory change that expanded FHLB membership only to commercial banks and federally insured credit unions.
“This will make ts easier for Main Street credit unions to offer mortgages to families and loans to small business. Expanding the eligibility of the Federal Home Loan Bank System to privately-insured credit unions is long-overdue,” Brown said in a statement.
“By providing these financial intuitions with the ability to join the Federal home loan bank system, we help these community institutions keep more local dollars invested in local communities,” the Democrat from Cleveland said.
There are currently 12 banks and more than 8,000 member institutions in the FHLB system.
“This bill will help Ohio families and small businesses who continue to struggle through a weak economy by increasing their access to mortgages and loans to buy homes and office space,” said Portman, a Republican from Cincinnati.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
