WASHINGTON–Non-federally insured institutions, including state-chartered CUs, that have been certified as CDFI’s by the U.S. Treasury’s CDFI Fund are now eligible to become Federal Home Loan Banks under a final rule that will take effect near the end of this month.
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The rule, crafted by the Federal Housing Finance Agency, implements a section of the Housing and Economic Recovery Act passed in 2008.
Congress set down the guidelines for membership as a FHLB to provide CDFIs with more long-term funding that could expand their capacities to promote economic growth in lower-income areas. Eligible CDFIs include community development loan funds, some venture capital funds and state-chartered CUs that do not have federal insurance.
