Though the government put out one fire over a controversial Chicago Federal Home Loan Bank pilot program, it failed to stamp out the major criticism.

Under the program, which is expected to start in June, member banks and thrifts would originate and service one- to four-family home mortgages and hold reserves against credit losses. The Chicago Home Loan Bank would fund and hold the mortgages, and manage the interest rate risk.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.