1. Short title This Act may be cited as the Transparency in Federal Home Loan Bank Membership Act of 2020 . 2. Definitions Section 2 of the Federal Home Loan Bank Act ( 12 U.S.C. 1422 ) is amended by adding at the end the following: (13) Captive insurance company The term captive insurance company means an insurance company whose primary business is the insurance of its affiliates. (14) Insurance company The term insurance company means an entity that holds an insurance license or charter under the laws of a State. (15) Parent company The term parent company means the ultimate parent company. . 3. Captive insurance company eligibility for membership (a) In general Section 4(a) of the Federal Home Loan Bank Act ( 12 U.S.C. 1424(a) ) is amended by adding at the end the following: (6) Eligible captive insurance companies (A) In general A captive insurance company shall be eligible to become a member of a Federal Home Loan Bank only if the parent company of the captive insurance company meets the following requirements: (i) Mission alignment standards (I) Housing investment At least 51 percent of the total assets of the parent company are invested in residential mortgage loans. (II) Form of investments At least 60 percent of the total assets of the parent company are held in real estate assets, cash and cash equivalents, and government securities (as such terms are used under section 856(c)(4)(A) of the Internal Revenue Code of 1986). (ii) Capital standards Such capital standards as the Director determines appropriate, by rule, which shall be as close as practicable to those capital standards applicable to insured depository institutions (as defined under section 3 of the Federal Deposit Insurance Act). (B) Ongoing membership (i) Reporting requirement Every 5 years after becoming a member of a Federal Home Loan Bank, a captive insurance company shall submit a report, prepared by a third-party auditor, to the Director containing information on compliance by the parent company with the requirements described under