CONGRESSWOMAN ELISE STEFANIK
On Tuesday, May 6, 2014, the House will consider H.R. 3584, the Capital Access for Small Community Financial Institutions Act of 2013, as amended, under a suspension of the rules. H.R. 3584 was introduced on November 21, 2013 by Rep. Steve Stivers (R-OH) and was referred to the Committee on Financial Services, which ordered the bill reported, as amended, by a vote of 55-0.
H.R. 3584 amends Section 4(a) of the Federal Home Loan Bank Act (12 U.S.C. 1424(a)) to treat certain privately insured credit unions as insured depository institutions for purposes of determining eligibility for membership in a Federal Home Loan Bank (FHLB). Moreover, within 18 months of the bill’s enactment, the Comptroller General of the United States is required to report to Congress on the adequacy of insurance reserves held by a private deposit insurer and provide information on the level of compliance with Federal regulations relating to the disclosure of a lack of Federal deposit insurance.
The Federal Home Loan Bank (FHLB) System was established in 1932 in order to facilitate mortgage lending. Currently, thousands of institutions are members of the FHLB, but a number of credit unions are not eligible membership because they are privately insured through a mutual insurance company and are state regulated. This legislation would allow these institutions, for purposes of determining eligibility for the FHLB system, to be treated as a federally insured depository.
A CBO cost estimate is currently unavailable.
For questions or further information contact the GOP Conference at 5-5107.