Luetkemeyer Response to Finalized Federal Housing Finance Agency Rule

Washington, D.C. – January 13, 2015 – (RealEstateRama) — U.S. Rep. Blaine Luetkemeyer (MO-03) issued the following statement after the Federal Housing Finance Agency (FHFA) issued a final rule on Federal Home Loan Bank membership:

“In a disappointing, but not surprising decision, the Federal Housing Finance Agency, issued a final rule regarding Federal Home Loan Bank membership requirements. While I am pleased with parts of the final rule, I am disappointed that it forces captive insurers out of the Federal Home Loan Bank system. It is Congress, not FHFA, which has the authority to set membership standards for the system. Not only is this a blatant violation of the rule of law but it is a decision based on little evidence or analysis. Before making such rash decisions, FHFA should consider, in conjunction with Congress, the implications of this move on the housing finance system. In the House of Representatives, I have introduced H.R. 3808, bipartisan legislation that would block implementation of this rule and require a study on implications of this drastic step. We must ensure that decisions impacting our housing system are made in a thoughtful and educated manner and make sure that entire segments of industry are not exiled from participation in the Federal Home Loan Bank system. More importantly, FHFA needs to comply with standards already set in law. Congress changes the law, not the FHFA.”