Capital Access for Small Community Financial Institutions Act explained

Capital Access for Small Community Financial Institutions Act
Shorttitle:	Capital Access for Small Community Financial Institutions Act
Fullname:	To amend the Federal Home Loan Bank Act to allow non-Federally insured credit unions to become members of a Federal Home Loan Bank.^[1]
Acts Amended:	Federal Home Loan Bank Act^[2]
Leghisturl:	https://www.congress.gov/bill/113th-congress/house-bill/1862/actions
Introducedin:	House
Committees:	House Financial Services Committee
Passedvote1:	House Financial Services Committee, 55-0
Introducedby:	Steve Stivers (R–OH)
Introduceddate:	May 7, 2013

The Capital Access for Small Community Financial Institutions Act is a bill introduced in the U.S. Congress that would enable credit unions that are privately insured to become members in the Federal Home Loan Bank (FHLB) system. In March 2014, the bill was approved by the House Financial Services Committee^[3] by a unanimous vote of 55-0.^[4] The legislation amends parts of the Federal Home Loan Bank Act.^[1] Under current U.S. law, only credit unions that are federally insured can join the FHLB system.^[5]

Purpose

The intent of the bill is to improve the U.S. housing market by reducing regulatory requirements to community credit unions. Some privately insured credit unions that serve public servants and small businesses have not been allowed to apply to the FHLB system

Background

As of 2014, approximately 132 small credit unions, located among nine states, are insured by a mutual insurance company instead of the federal government. Although federal government insurance for credit unions began in 1970, some small credit unions remained privately insured.^[6]

Cosponsors

Congresswoman Joyce Beatty and Congressman Andre Carson are cosponsors of the legislation.^[7]

Support

Organizations that have said they support the bill include:

National Association of Federal Credit Unions
National Association of State Credit Union Supervisors^[8]

Opposition

Some Democratic members of the Financial Services Committee and the National Credit Union Administration oppose the bill.^[9]

Notes and References

Web site: H.R. 1862: Capital Access for Small Community Financial Institutions Act of 2013. GovTrack.us. Civic Impulse, LLC. 18 March 2014. Washington, D.C..
Web site: Bill Summary & Status - 113th Congress (2013 - 2014) - H.R.1862 - All Information. Congress.gov. Library of Congress. 18 March 2014. Washington, D.C..
News: Committee advances bill that would let credit unions apply to FHLB system . 18 March 2014 . Ripon Advance . 18 March 2014 . Washington, D.C. . dead . https://web.archive.org/web/20140324082233/http://riponadvance.com/news/committee-advances-bill-that-would-let-credit-unions-apply-to-fhlb-system/6964 . 24 March 2014 .
Web site: Gluck . Scott . Private Fund Update . Venable LLP . 18 March 2014 . Washington, D.C. . 17 March 2014 . dead . https://web.archive.org/web/20140320083000/http://www.venable.com/files/Publication/e4dcc882-fcec-423f-b38e-8e25ac563553/Presentation/PublicationAttachment/d013104a-8e0b-46ef-b537-57f8b7569bb4/PFU-3-17-14-FINAL.pdf . 20 March 2014 .
Web site: Berger urges support of supplemental capital. Credit Union Insight. National Association of Federal Credit Unions. 18 March 2014. Arlington, Virginia. 12 March 2014.
News: Stivers Legislation to Boost Housing Market Passes Out of Committee. 18 March 2014. InsuranceNewsNet.com. 15 March 2014. Washington, D.C..
Web site: Bill Summary & Status - 113th Congress (2013 - 2014) - H.R.1862 - Cosponsors. Congress.gov. Library of Congress. 18 March 2014. Washington, D.C..
Web site: Spotlights on Capital Hill. NASCUS Legislative Affairs Department. National Association of State Credit Union Supervisors. Arlington, Virginia.
Congresswoman Beatty assists in passage of bipartisan Capital Access for Small Community Financial Institutions Act out of House Financial Services Committee . U.S. Representative Joyce Beatty . 14 March 2014 . 18 March 2014.