ABSTRACT
When a representative attends hearings or proposes a bill, (s)he is making a move in a dynamic political game. The objective of the person may be obtained with this act and (s)he may be little concerned about whether or not the move ultimately results in legislation. A proposal in the FINE Discussion Principles, as in the Hunt Commission report, is that lending powers of savings institutions be increased so that their portfolios may be guided to a greater extent by market forces than by arbitrary fiat. Installment lending and other short-term credit instruments are suggested. Not surprisingly this proposal was generally supported by savings bankers and by savings and loan association. The FINE Discussion Principles contain three proposals for increasing and stabilizing flows of funds to this housing market: a mortgage-interest tax credit, a Federal Home Loan Bank loan program, and a mortgage loan reserve credit.
