Summary outlines FHLB membership rules

A summary of final rules governing non-federally insured credit union membership in the Federal Home Loan Bank (FHLB) system, and outlining procedures for non-federally insured CUs to join, has been published by NASCUS.

According to the summary, the final rule (published by the Federal Housing Finance Agency (FHFA)) makes substantive change from the proposed rule: it allows non-federally insured credit unions to submit their request to their state regulator for a share insurance determination at the same time as it submits its initial application to the FHLB. This starts the six-month default timetable if the state regulator is unwilling to make the determination.

The rule is effective July 5, 2017.