Comment Detail

Comment

I am Mark Yamane, SVP and CFO of Aloha Pacific Federal Credit Union commenting in support of the FHLB system on behalf of our credit union which is headquartered in Honolulu with over 64,000 members.

The FHLB is an important source of funding which we can always rely on. As a credit union that specializes in mortgage lending and servicing, Aloha Pacific has looked to the FHLB in good times and in challenging times. The recent failures of two very large banks has sent shock waves through the financial community. Some bank customers and credit union members are once again questioning the safety of the banking system as some did during the Financial Crisis of 2008. Although these are very different times and circumstances, the public at large does not understand the difference. It is in times like these that all parts of the banking system, including the FHLB, are needed to support the network of banks and credit unions that customers and members place their deposits and trust in.

The FHLB system is a vital part of the banking system which has stood by small, medium, and large financial institutions. As a credit union in the middle of the Pacific, we know the challenges of providing affordable housing finance for our members. The flexibility of FHLB advances allows us to target our funding or apply funds in a more general way to support our mortgage business. The ability to pledge mortgage loans as collateral for advances fits our business of making a mortgage, servicing the mortgage, and using the mortgage as collateral to support making yet another mortgage. This cycle is made possible through the ease in obtaining FHLB advances. Collateral and reporting requirements are reasonable giving credit unions of our size or smaller ready access to FHLB advances. As the former CEO of a $50 million credit union, I appreciate how easy it can be for even a small financial institution to obtain advances from the FHLB. Keeping it simple has been valuable to all of us, big and small.

The dependability of the FHLB system and the backing of the Federal government is a critical component of housing finance and financial institution liquidity in Hawaii. We encourage decision makers to consider the ease, flexibility, and reliability of the current system and how it has been there for all of us, especially during times of less certainty.