Leahy Calls On Fed Chief To Help Spur Lending For Affordable Housing
Senator Patrick Leahy (D-Vt.) and Senator Herb Kohl (D- Wisc.) are leading 19 senators in urging Federal Reserve Chairman Benjamin Bernanke to use funds at his disposal to increase the availability of loans through the state Housing Finance Agencies (HFAs) for low- and middle-income first-time homebuyers and refinancing borrowers.
While lending programs at the Vermont Housing Finance Agency continue to operate, across the country many HFAs have had to limit, or in some states even halt, their help to these homebuyers. In the letter, Leahy and Kohl called on Bernanke to use all tools at his availability, including the newly created Term Asset-Backed Securities Loan Facility, to help troubled homeowners stay in their homes and assist ailing housing markets across the country. Leahy believes that these steps, helping to ensure that HFAs have access to reasonably priced capital, would help these agencies so they can continue providing vital financing in the housing market. The text of the Leahy-Kohl letter, also signed by Senator Sanders (I-Vt.), is below.
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