WASHINGTON—The Federal Housing Finance Agency (FHFA) has released new recommendations that could pave the way for cooperativas in Puerto Rico to become a member of the Federal Home Loan Bank system.
Cooperativas are a type of state-chartered credit union organized under the laws of the Commonwealth of Puerto Rico
The recommendations are included in an update to the FHLB report published in November titled, “Federal Home Loan Bank (FHLBank) System at 100: Focusing on the Future.”
According to the FHFA, the recommendations in the report are designed to ensure that the FHLBanks are “well-positioned to continue delivering on their mission priorities,” America’s Credit Unions said.
The report contains several recommendations favorable to CUs, ACU said, including increasing support for “mission-oriented” organizations such as Community Development Financial Institutions (CDFIs).
‘Critical Part’
“Cooperativas are a critical part of the financial system in Puerto Rico, and many are Treasury-certified CDFIs,” the FHFA said in its release, adding that no cooperativa is an FHLBank member to date.
Following publication of the report, FHFA also published an Advisory Bulletin communicating its expectation that each FHLBank establish a framework for pilot and voluntary programs.
Key Priorities
According to the agency, key priorities in 2024 include:
- Clarifying the FHLBank System mission
- Aligning eligibility requirements for different types of FHLBank members
- Streamlining requirements related to the Affordable Housing Program
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