07/16/2024 | News release | Distributed by Public on 07/16/2024 09:58
The Federal Housing Finance Agency should reconsider establishing a Federal Home Loan Bank (FHLB) dual mission statement and consider targeted policy initiatives as alternatives, America's Credit Unions and state Leagues wrote to the agency Monday. The FHFA proposed to establish core mission activities and mission achievement for the FHLBs.
America's Credit Unions and the Leagues noted credit unions depend on the flexibility of the FHLBs to "adapt to changing economic conditions and community needs," and shared several concerns with the proposals.
"The proposed changes to the mission statement could limit credit unions' access to liquidity, impose restraints on their ability to offer innovative financial products, and increase compliance costs and administrative burdens," the organizations wrote. "Furthermore, without additional clarification, the proposed incentive program would likely primarily benefit volume lenders and push small community lenders out of the market."
The organizations also note: