A program to let the Federal Home Loan Bank of New York underwrite affordable housing and community development loans has some thrift industry representatives crying foul.

The pilot project, which was authorized by the Federal Housing Finance Board July 3, would allow the New York district bank to underwrite mortgages jointly with its members. The program comes in response to complaints by member institutions, who said federal rules limiting the amount they can lend to one borrower prevented them from financing large community development projects.

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