Securitization of Mortgage Loans by the Federal Home Loan Bank System

Federal Home Loan Bank System

07.30.2009

During his tenure as a Senior Economist with the Federal Housing Finance Agency, Dr. George Korenko, a partner at Edgeworth, co-authored the report “Securitization of Mortgage Loans by the Federal Home Loan Bank System” submitted to the Committee on Banking, Housing and Urban Affairs of the U.S. Senate and the Committee on Financial Services of the U.S. House of Representatives.

This report provides several conclusions with respect to mortgage securitization and the Federal Home Loan (FHL) Banks. It identifies several benefits and risks of FHLBanks securitization, anticipates some of the effects, and recommends that the committees not permit the FHLBanks to securitize mortgages at the time.