All Federal Home Loan bank borrowers would have to document their support of first-time homebuyers, under a rule to be proposed Thursday by the Federal Housing Finance Board.

Bank and thrift borrowers also will have to submit their latest Community Reinvestment Act rating and the date of their last exam.

"We are just making clear that the system's subsidized products should not be made available to those who don't use their own resources to serve their own community," finance board Chairman Bruce Morrison said in an interview Monday.

While bank and thrift trade groups are not objecting, credit union officials are concerned the plan could be the first step toward extending CRA to their industry.

"While a lot of credit unions do have a number of programs for first- time homebuyers, we don't think that the finance board should be applying CRA-type requirements to credit unions," said Sarah Cummer, federal compliance counselor for the Credit Union National Association.

But Mr. Morrison insisted the proposal will simply allow his agency to focus on the "handful" of members who don't do enough to support first-time homebuyers.

"We're not creating a CRA standard that institutions other than banks and thrifts have to meet," he said, adding the proposal's definition of "support of first-time homebuyers" goes beyond lending to include buying these loans and counseling.

Under the proposal, which the agency is expected to issue for a 60-day comment period, system members would be put on probation if the finance board decides they do not sufficiently support first-time homebuyers. If the institution does not improve, it would not be eligible to receive long- term advances or affordable housing program funds.

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