Former NCUA Board Member Geoff Bacino has recommended all credit unions review the Federal Housing Finance Agency's proposed rule that would require them to maintain 10% of all assets in residential mortgages to retain membership in the Federal Home Loan Bank system.
"If enacted, this rule could dramatically affect the ability of credit unions to utilize this valuable liquidity option. Comments are due by January 12, 2015. Recently, 68 House members sent a letter to FHFA Director Mel Watt requesting that the agency reconsider this proposal. While the proposed rule would affect all credit unions, it would only affect banks with assets of $1.1 billion and higher," Bacino wrote in a newsletter.
NAFCU President/CEO Dan Berger called the proposal another layer of regulatory burden on credit unions.
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