The Mortgage Bankers Association wrote to Congress in support of S. 2361, the Housing Opportunity Mortgage Expansion Act. The bipartisan bill proposes to amend the Federal Home Loan Bank (FHLB) Act to allow certain captive insurance companies to have their FHLB memberships continued or restored.
Captive insurance companies lost FHLB membership eligibility in February 2017 upon the effectiveness of a Federal Housing Finance Agency final rule, stipulating that such entities should be excluded from the definition of “insurance company” under the FHLB Act.
Read on to learn more about the legislation and why it has gained industry support.