Senate Bill Looks to Reverse FHLB Captive Insurers Rule
February 16, 2018
Legislation was recently introduced to allow captive insurance companies, most commonly real estate investment trusts, to restore their memberships with the Federal Home Loan Banks. Sen. Tammy Duckworth, D-IL, introduced the bipartisan bill along with Sens. Ron Johnson, R-WI, and Tim Scott, R-SC.Any captive insurer that was a member before Jan. 19, 2016, could continue or restore its membership in the system under S. 2361, the Housing Opportunity Mortgage Expansion Act. This would reverse a 2016 final rule that banned captive insurance companies from access to the FHLBanks and said any members that joined the system by way of their captive insurers before the Federal Housing Finance Agency’s proposed rule issued in September 2014 had five years to relinquish their membership.