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The Federal Housing Finance Agency (FHFA) adopted a final rule revising its regulations governing Federal Home Loan Bank (Bank) membership. The final rule adopts several key revisions included in the Notice of Proposed Rulemaking.  These revisions were made to prevent the circumvention of the statute’s membership restrictions by ineligible entities using captive insurers as conduits for Bank membership, by defining the term "insurance company" to exclude captive insurers, thereby making them ineligible for Bank membership. The rule permits any Bank that has admitted captives to membership a transition period within which to wind down its affairs with those entities; requires a Bank to obtain and review an insurance company’s audited financial statements when considering its application for membership; clarifies the standards by which a Bank is to determine the "principal place of business” for its members, including specific standards for insurance companies and community development financial institutions; and removes obsolete provisions. The final rule did not implement the proposed rule’s provisions with respect to continuing eligibility requirements, in order to avoid compliance burdens that may outweigh the benefits.