Source: United States House of Representatives – Congressman Vicente Gonzalez (15th District of Texas)
“The housing affordability crisis is a daily reality for families who are working hard, saving responsibly, and still watching the dream of owning a home slip further away,” said Congressman Fitzpatrick. “Part of that challenge is structural. Outdated policies restrict access to capital and limit the lending capacity of trusted community institutions. The MORE Act corrects that by modernizing the Federal Home Loan Bank system to include credit unions—expanding liquidity, increasing competition, and strengthening community-based mortgage lending. When we expand access to capital, we expand access to opportunity. This bipartisan reform helps to restore balance to our housing market and bring the American Dream of homeownership back within reach.
“America’s Credit Unions welcomes bipartisan legislation from Congressmen Vicente Gonzalez and Brian Fitzpatrick that would enhance credit unions’ ability to access the Federal Home Loan Bank system. This bill is a common-sense solution that affirms what Congress has known for years, and that the Government Accountability Office recently confirmed: access to the FHLB system for small financial institutions improves their access to liquidity, lowering rates for consumers while maintaining their safety and soundness. Ultimately, expanding access to the FHLBs would benefit thousands of community-based credit unions and give them a powerful, safe tool to support homeownership, strengthen local communities, and help more people build financial security.” – Scott Simpson, president/CEO, America’s Credit Unions
“We appreciate the leadership of Reps. Vicente Gonzalez and Brian Fitzpatrick in recognizing that credit unions are vital community financial institutions. Access to the Federal Home Loan Bank system strengthens our ability to provide mortgages, manage liquidity, and serve members in good times and bad.” – Jim Phelps, EVP, chief advocacy officer, Cornerstone League.
“We commend Representatives Fitzpatrick and Gonzalez for sponsoring this important legislation as a step toward ensuring credit unions have fair access to the Federal Home Loan Bank system. When credit unions can fully participate in the FHLB, they are better positioned to expand mortgage lending, support local housing markets, and deliver long-term stability for the members and communities who rely on them. Expanding access strengthens not just credit unions, but the communities they serve.” – Patrick Conway, president/CEO CrossState Credit Union Association.
Under current law, the Federal Home Loan Bank Act defines a “community financial institution” (CFI) as a Federal Deposit Insurance Corporation (FDIC)-insured depository institution with average total assets below the statutory cap—adjusted annually by the Federal Housing Finance Agency. This includes small banks and savings institutions whose deposits are insured under the Federal Deposit Insurance Act. Federally insured credit unions may join the FHLB System, but because their deposits are insured under the Federal Credit Union Act rather than the FDIC Act, they are not currently treated as CFIs.
The full bill text can be found here.
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