DCUC, On Behalf of Credit Unions, Presents Recommendations to Strengthen Housing Finance and Community Liquidity

WASHINGTON, DC – Today, the Defense Credit Union Council (DCUC) submitted official comments to the House Financial Services Subcommittee on Housing and Insurance ahead of its hearing, "Oversight of the Federal Home Loan Bank System.” DCUC specifically urged Congress to strengthen the Federal Home Loan Bank (FHLBank) System as a critical source of liquidity, housing finance, and financial stability for credit unions and the military communities they serve. ​

​For credit unions, dependable access to FHLBank advances is essential to meeting the unique financial needs of servicemembers, veterans, and military families during deployments, permanent change-of-station moves, natural disasters, federal funding disruptions, and other periods of economic uncertainty. 
 
"The Federal Home Loan Bank System plays a vital role in helping credit unions keep mortgage lending flowing, strengthen community development, and maintain financial stability when military communities need it most. Preserving reliable liquidity is fundamental to both housing affordability and financial readiness,” says Jason Stverak, DCUC Chief Advocacy Officer. 
 
In its comments, DCUC encouraged Congress to pursue reforms that strengthen the cooperative mission of the FHLBank System while ensuring credit unions of all sizes have equitable access to its programs and services. 
 
Among its recommendations, DCUC urged policymakers to: 
 

• Preserve reliable access to FHLBank advances as a stable source of liquidity. 
  

• Modernize mortgage asset programs to expand secondary market opportunities for credit unions. 
  

• Improve participation for smaller credit unions through more transparent and streamlined membership and collateral requirements. 
  

• Protect the Affordable Housing Program while expanding support for military families, veterans, first-time homebuyers, rural communities, and underserved markets. 
  

• Recognize FHLBank advances as stable, secured funding within the regulatory framework. 
  

• Ensure credit unions have a meaningful voice in future FHLBank policy discussions. 
  

 
DCUC also expressed support for several legislative proposals under consideration, including measures recognizing FHLBank advances as core funding, modernizing mortgage asset programs, clarifying membership eligibility, strengthening the System's capital framework, and enhancing affordable housing investments with appropriate safety-and-soundness safeguards. 
 
DCUC encourages Congress to include credit union representatives in future hearings examining the FHLBank System, noting that credit unions are cooperative owners of the System and serve more than 146 million Americans. 
 
"Credit unions are not simply participants in the Federal Home Loan Bank System, they are cooperative partners committed to expanding homeownership, strengthening communities, and ensuring families have access to affordable financial services," says Anthony Hernandez, DCUC President/CEO, Ret. U.S. Air Force Colonel. "We appreciate Congress' continued oversight of the System and look forward to advancing thoughtful reforms that preserve its cooperative foundation while expanding opportunities for credit unions to better serve military families and communities across the country." 
 
DCUC reaffirmed its commitment to working with Congress, the Federal Housing Finance Agency, the National Credit Union Administration, and the Federal Home Loan Banks to preserve a strong, member-owned liquidity cooperative that supports housing finance, financial resilience, and community development nationwide.