The past three years provided a stern reminder that housing is the beating heart of both our nation's economy and its communities. There is no doubt that our housing finance system is in need of healing, but it is vital that policymakers do no harm. Community lenders do not require intensive care.

The 12 Federal Home Loan banks are a source of strength and stability for the community banking system. They enable the delivery of credit to communities for homeownership and rental housing, businesses, infrastructure and jobs. In her statement last week to the House Financial Services Committee's hearing on the future of housing finance, Sarah Rosen Wartell, executive vice president of the Center for American Progress Action Fund, said, "The goals of the housing finance system should include liquidity, stability and affordability."

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