Political Quotes

“the mid-2000s housing bubble was fueled by cheap access to credit and unsound, deceptive, and sometimes fraudulent mortgage lending practices. Borrowers were offered risky, high-cost loans they could neither afford nor understand by originators who abandoned traditional underwriting process, accepted loan applications with little or no documentation, and directly profited from selling unsustainable loans wholesale. The Dodd-Frank Wall Street Reform and Consumer Protection Act contains many necessary and important reforms to the mortgage origination industry to prevent future abuses. However, the law is complex and has, unintentionally, imposed onerous, one-size-fits-all rules on community banks and local financial institutions that originate mortgages to entrepreneurs and farmers. For over a decade, and under supervision of the Federal Housing Finance Agency, the Federal Home Loan Banks, FHLBanks, have operated a set of mortgage programs that ensure small financial institutions can expand access to credit and originate affordable mortgages in their communities. The Mortgage Partnership Finance program--and the similar Mortgage Purchase Program--provides members an alternative secondary mortgage market. A FHLBank purchases a mortgage and manages the liquidity, interest rate, and prepayment risks while the originating bank member assumes some credit risk for the loans.…”