WASHINGTON — Federal Reserve Chairman Ben Bernanke said Friday that the housing finance system being constructed following the collapse of the current system will need better safeguards to allow it to function during times of stress.
Whatever shape the new system takes should ensure that the institutions that support the financing of home mortgages do not pose a systemic risk to our financial markets and the economy, Bernanke said in a speech prepared for a housing conference in Berkeley, Calif.
He outlined a number of possible ways to structure housing finance in the future, but did not state his own preferences.
The issue of how financing should be restructured was a good one for policymakers to address during what he called the current “time out” when Fannie Mae and Freddie Mac are both under the control of the federal government, Bernanke said.
The two mortgage giants were placed into conservatorship on Sept. 7, part of a series of events that have unfolded as the biggest financial crisis in seven decades has hit the U.S. economy.
Speaking about the credit crisis that started in August 2007, Bernanke said it began with the end of a prolonged housing boom in the U.S. that exposed “serious deficiencies in the underwriting and credit rating” for mortgages, particularly subprime mortgages, loans made to borrowers with weak credit histories.
Business
Bernanke explores options for housing finance
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Family wins Keystone travel trailer
Keystone RV of Goshen, has awarded a Passport travel trailer to a winner in its Rediscover America RV Giveaway.
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Supreme Corp. has profit increase
Supreme Industries, Goshen, reported an increase in profit for 2011 compared to 2010.
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Super Bowl spectacle good for Goshen businesses
Today’s Super Bowl will result in a super effort from local food outlets that will be hustling to meet the demand for groceries and takeout orders.
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‘48 Days’ author to speak
The author of the best-selling “48 Days To The Work You Love,” Dan Miller, will be in speaking in Warsaw at 6 p.m. Feb. 12.
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Bob Martin named RV group president for Thor Industries
Bob Martin, president of Keystone RV, has been named RV group president for Thor Industries.
Thor operates six recreational vehicle companies — Airstream, CrossRoads, Dutchmen, Heartland, Keystone RV and Thor Motor Coach. -
Indiana right-to-work bill heads to final vote
The Indiana Senate has set the stage for a final legislative vote on the contentious right-to-work bill.
The Republican-dominated Senate on Tuesday rejected all amendments offered by Democratic senators to the bill. -
Ind. House approves limited statewide smoking ban
Indiana House lawmakers are sending a limited statewide ban on smoking to the Senate for consideration.
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Indiana right-to-work bill on way to final vote
Republican Gov. Mitch Daniels said Monday he is ready this week to sign legislation to make Indiana the first state in a decade to enact a right-to-work law.
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Ind. House OKs right-to-work
Indiana's Republican-controlled House of Representatives cleared the way Wednesday to become the first right-to-work state in a traditionally union-heavy Rust Belt increasingly targeted by non-union foes.
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Goshen's Old Country Buffet closed
The Old Country Buffet on Goshen’s northwest side is closed.
Signs posted Monday on the front doors of the eatery, located in Market Centre along Elkhart Road (U.S. 33), indicated the establishment was out of business. - More Business Headlines
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