A bill that would allow privately insured credit unions to join Federal Home Loan Banks cleared the House Financial Services Committee Thursday.

“We're very excited with the committee's handling of the markup which will provide parity in the law for our privately insured credit unions,” said American Share Insurance President/CEO Dennis Adams of the bill, H.R. 3584.

Adams also said in the release the Dublin, Ohio-based ASI agreed with all of the proposed amendments added in the markup session. Amendments removed passages in the legislation that would have required additional reporting to the NCUA.

“We are also encouraged by the progress this initiative is making as it moves through the legislative process.  A companion bill (S. 1806) has been presented in the U.S. Senate, and we are hopeful that one of the bills finds its way to enactment.”

The next step for the House bill would be a full roll call vote.

An ASI spokeswoman said the member-owned firm currently counts 131 credit unions that offer the private product as primary deposit insurance.

Adams praised the sponsors of the amended bill, Rep. Steve Stivers (R-Ohio) and Rep. Joyce Beatty (D-Ohio), who he said did an outstanding job of explaining the value of this legislation and the fact that it corrects an oversight from 1989 when the FHLB Act first permitted federally insured credit unions access to the FHLB System.

“ASI thanks all of its member credit unions, participating state credit union leagues, CUNA and NASCUS for their support of this initiative and communication with Committee members,” he said.