Future housing demands and sources of mortgage money

Federal Home Loan Bank Board Journal, April, 1984 by Alan R. Winger

Thrifts in this setting will find plenty of opportunity to pursue their real estate lending goals. While they will not be able to operate in this market as they have in the past, they will be able to add loans to their portfolio through funds accumulated by deposit inflows and borrowings from such sources as the Federal Home Loan Banks.

The continuation of a dominant role in real estate finance, however, will require that thrifts become more actively involved in the secondary market and with mortgage-backed securities operations. Thrift participation in the secondary market has increased sharply over the past five years; their involvement with mortgage-backed securities has moved more slowly. Thrifts will find more and more that to expand, indeed even maintain their position in real estate finance markets, they will have to work at establishing further links with a market that is evolving into a national market, the key elements of which at this time are the secondary and mortgage-backed securities markets.