Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
FHFA should retain compliance role CUNA says
WASHINGTON (2/13/12)—A Federal Housing Finance Agency (FHFA) plan to delegate responsibility to the Federal Home Loan Banks (FHL Banks) for determining their members' compliance with the FHFA's community support requirements would inappropriately force the FHL Banks to act both as lenders to their members and regulators of them.

That is the opinion of the Credit Union National Association (CUNA) as expressed in a Feb. 8 comment letter to the FHFA.

Under its current community support rules, the FHFA must conduct biennial reviews of the performance of selected FHL Bank member institutions, including credit unions, to evaluate their compliance with community support standards.  Compliance determines member institution eligibility for access to long-term FHL Bank advances.

"While credit unions are not subject to the (Community Reinvestment Act) or its associated reporting requirements, credit unions that are members of an FHL Bank must nonetheless submit to FHFA a Community Support Statement, which evidences each member credit union's record of lending to first-time homebuyers as part of this evaluation process," the CUNA letter noted.

Determination of compliance, CUNA maintained, is "inherently a regulatory function" and the FHFA is "best suited to determine compliance with its own regulations."

"The FHL Banks should be allowed to continue doing what they do best--fulfilling their mission by offering advances

and community investment products to their members," CUNA wrote.

Use the resource link to access the complete letter.


RSS print
News Now LiveWire
Even 1 step makes a difference in preparing for disasters #creditunions #NewsNow http://t.co/eFUmMJnIwA
9 hours ago
From today's @USATODAY front page, a shout out to #CreditUnions courtesy of @CUNA http://t.co/881vLPeECN
10 hours ago
Happy anniversary to the ATM! 45 years of self-service cash HT @GOBankingRates http://t.co/ycsm3GFwk5
12 hours ago
.@USATODAY print edition features #creditunion membership march to #100mm. Zoom in on lower left hand corner #NewsNow http://t.co/Xv8fyX7ces
12 hours ago
No special assessment for ASI member #creditunions in 2014. See #NewsNow http://t.co/NwL9eJwbiQ
12 hours ago