"It seems like a victimless crime” Cornelissen said of the Federal Home Loan Bank system's drift from its housing mission. "But every dollar that a private equity company gets from this system is a dollar that could help someone struggling to afford housing.” Read this new long-read on the #FHLB System and how #privateequity is tapping billions in government-supported funds from a #GSE that was meant to support #housing and #mortgages ?? ???
#PrivateEquity?firms are diverting billions from the trillion-dollar #FederalHomeLoanBank -- a Great Depression-era?#mortgage program?-- and making huge profits.? Sharon Cornelissen, who serves as chair of the Coalition to Reform Federal Home Loan Banks, a coalition of 17 national organizations promoting reform of the system, advocates for a tripling of?#affordablehousing?program contributions to 30%, noting that 40% of each bank's net earnings are paid out in dividends.? "They are very generous to their shareholders," Cornelissen said. "They should be more generous to the public, too." In a country where affordability has all but disappeared, Cornelissen said that it shouldn't be a big ask to bring the Federal Home Loan Bank system back to its original goal of helping people obtain?#housing. "It seems like a victimless crime” Cornelissen said of the system's drift from its housing mission. "But every dollar that a private equity company gets from this system is a dollar that could help someone struggling to afford housing.” Read more:?https://lnkd.in/g4iDKvRE