119-HR-7647 Journalist Public Summary

Public Summary: 119-HR-7647 (MORE Opportunities for Homeownership Act)

Headline Summary: Updates an old definition so federally insured credit unions can access the same Federal Home Loan Bank tools that small community banks use to support mortgages and local lending. (law.cornell.edu)

What It Does: The bill makes a one-line fix to the Federal Home Loan Bank Act’s definition of “community financial institution,” adding a reference to the Federal Credit Union Act. In practical terms, qualifying credit unions insured by the NCUA would count as community financial institutions (CFIs), not just FDIC‑insured banks. CFI status matters because it unlocks specific Federal Home Loan Bank (FHLBank) options—like allowing long‑term advances for small businesses, farms, and community development, and letting those loans serve as eligible collateral. CFIs are also exempt from the standard “10% of assets in mortgage loans” membership test. Credit unions can already be FHLBank members; this change aligns the statute’s CFI definition with that reality. (law.cornell.edu)

• Who’s For It: Introduced by Reps. Vicente Gonzalez (D‑TX) and Brian Fitzpatrick (R‑PA) on February 23, 2026; backers frame it as removing an outdated barrier so local lenders can help more first‑time buyers. (Sponsor details per bill text.)
• Credit union trade groups (e.g., America’s Credit Unions) have urged Congress to add credit unions to the CFI definition, arguing it would expand reliable FHLBank liquidity for member‑owned lenders serving households and underserved areas. (americascreditunions.org)
• Supervisors for state‑chartered institutions (CSBS and NASCUS) emphasize preserving broad, reliable FHLBank liquidity for both community banks and credit unions—context that aligns with the bill’s intent. (csbs.org)

• Who’s Against It: Banking trade groups (e.g., the American Bankers Association) have generally opposed expanding credit union authorities, citing competitive and mission‑drift concerns; they have pushed back on related credit‑union expansion bills led by the same sponsors. (bankingjournal.aba.com)
• Community‑bank advocates have likewise criticized perceived advantages for large credit unions and questioned further expansions—signaling likely skepticism toward measures that broaden credit‑union access to FHLBank benefits. (americanbanker.com)

What’s Next: As of February 24, 2026, the bill has been introduced and referred to the House Financial Services Committee. Next steps could include a hearing, committee markup, and House vote—followed by consideration in the Senate and, if passed, the President’s desk.