risk – for example, the long - term interest - rate risk posed by 30 - year fixed - rate mortgages. it is also difficult for investors who do not do the underwriting themselves to take long - term idiosyncratic credit risk. securitization backed by a predictable level of government support has a useful function in facilitating the allocation of these different risks to different sets of investors through the to - be - announced or “ tba ” market. i think the tba market will be key to ensuring americans ’ continued widespread access to the 30 - year fixed - rate mortgage. the tba market is also important to the role of small banks and lending institutions in a competitive housing finance system. ensuring an easy, predictable path to securitization of standardized mortgage products is essential to making mortgage credit available throughout our country – in traditionally underserved rural areas and urban areas, and to all sorts of current and potential homeowners, provided by financial institutions of different sizes in different locations. a strong regulator whose primary focus is the housing finance system can also help ensure fair access to smaller institutions. in summary, it is my personal belief that housing finance reform must incorporate an explicit government backstop accompanied by significant sources of high - quality first - loss private capital. thank you for the opportunity to appear before you today. i look forward to your questions. bis central bankers ’ speeches

financial pressures. about 4 percent of debt balances currently are 90 + days past due in albany, which is twice the 2 percent delinquency rate in 2005. although this is less than half of the rate in new york state or the nation, this doubling of delinquencies in the albany area still troubles me as a sign of heightened distress for many families here. stepping back from the current challenges, the capital region possesses a number of fundamental strengths. these strengths show through in some key ways : albany is growing. the recent census shows that the population in the region expanded by 5. 5 percent over the past decade, more than double the statewide average. saratoga county saw an especially strong gain of nearly 10 percent. incomes in the region are high. albany is the state ’ s most affluent area outside the new york city metropolitan region. median household income was roughly $ 57, 000 in 2009, moderately above the statewide median and well above the nation ’ s. not surprisingly, then, the poverty rate is lower than the u. s. average – 11 percent versus 14 percent nationally. your residents are highly educated. educational attainment – a critically important driver of economic activity – is also well above the national average. a third of adults who live in the albany area hold college degrees. one of albany ’ s key strengths is its higher education industry. the colleges and universities in the capital region help stabilize the local economy during downturns and recoveries. indeed, the private education sector continually added jobs before, during, and after the quarterly report on household debt and credit, august 2011. bis central bankers ’ speeches great recession, both nationally and locally. for example, the university at albany has taken a lead role in shaping the next generation of financial professionals and regulators through its pioneering curriculums. from my perspective at the fed, a particularly important and timely example is the university ’ s innovative national science foundation - supported program for instruction and research in financial market regulation. research conducted by the new york fed has shown that colleges and universities can help build the skills and education of their region ’ s workforce, which is critical to an area ’ s ultimate economic success. 4 they do this in two ways. most directly, colleges and universities support an educated workforce by producing new college graduates, some of whom will stay and work in the area. the university at albany clearly plays this role in the capital area. perhaps equally important in terms of promoting local economic growth, colleges and universities can play a