This proposed rule would amend FHFA’s regulation on Bank membership to:  improve fairness and consistency of treatment of different member types under the regulation; prevent circumvention of the membership eligibility requirements; clarify FHFA’s expectations of the Banks regarding their applicant review and due diligence duties to improve safety and soundness; and reorganize and update the regulation to improve conceptual coherence among topics, include new sections, delete obsolete language, and move sections more appropriate to the Bank capital regulation.