The Federal Housing Finance Agency (FHFA) today issued a final rule that authorizes non-federally insured community development financial institutions (CDFIs) that have been certified by the CDFI Fund, including community development loan funds, venture capital funds, and State-chartered credit unions, to become members of a Federal Home Loan Bank (FHLB). The rule implements a provision included in the Housing & Economic Recovery Act (HERA) of 2008. The final ruling describes the eligibility and procedural requirements that will allow CDFIs to become members of a FHLB. The goal is to provide CDFIs not previously eligible as FHLB members with increased access to long-term funding that will expand their capacity to promote economic growth and stability in low- and moderate-income communities. The rule goes into effect February 4, 2010. Read More…