Experts say a proposed rule to limit the ability of the 12 Federal Home Loan banks to buy mortgage-backed securities would have minimal impact on the secondary market for mortgages.

The rule, proposed last week by the Federal Housing Finance Board, would bar the banks from using money they raise in the capital markets to invest in mortgage-backed securities. The idea is to keep the banks focused on their mission of promoting home finance by providing liquidity to member institutions, and to prevent them from conducting arbitrage.

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