3 Puerto Rico Cooperativas Become First To Join FHLBank System
By CU Today Staff —
NEW YORK—Three Puerto Rico cooperativas have become the first on the island to join the Federal Home Loan Bank System, giving the financial cooperatives access to an additional source of liquidity for mortgage lending and other housing finance, Inclusiv reported.
The new Federal Home Loan Bank of New York members are Cooperativa de Ahorro y Crédito La Sagrada Familia (SagradaCoop), Cooperativa de Ahorro y Crédito de Camuy (Camuy Cooperativa) and Cooperativa de Ahorro y Crédito de Lares y Región Central (LarCoop). All three are members of Inclusiv.
“The formal acceptance of our membership application by the Federal Home Loan Bank of New York as the first cooperativa to join marks a transformative milestone for our cooperativa and for the entire cooperative movement in Puerto Rico. We are proud to pioneer this path, which will create new opportunities to expand access to fair and affordable financial solutions," said Eddie W. Alicea-Sáez, CEO of Cooperativa La Sagrada Familia.
The memberships follow a years-long effort to address structural differences that had prevented Puerto Rican cooperativas from joining the FHLBank System, despite the institutions being publicly insured and regulated. Puerto Rico's cooperativas collectively serve more than 1.2 million members.
In 2023, Inclusiv and more than 65 cooperativas pressed the Federal Housing Finance Agency to remove the barriers through comment letters and direct engagement with agency officials. In April 2024, the FHFA issued guidance establishing a pathway for eligible cooperativas to obtain FHLBank membership. The Federal Home Loan Bank of New York and Puerto Rico regulator COSSEC subsequently entered into a memorandum of understanding to implement the framework, Inclusive explained.
“Inclusiv has worked closely with our members, the regulators and local partners to unlock FHLB System membership for financial cooperatives in Puerto Rico. The approval of these initial cooperativa applicants to FHLBNY marks a monumental expansion that will allow cooperatives to access long-term capital to expand mortgage lending and make the dream of homeownership affordable to low- and moderate-income Puerto Rican families and households,” said Cathie Mahon, president/CEO, Inclusiv.
Originally reported by CU Today.