of governors of the federal reserve system, federal reserve issues fomc statement, march 15, 2020. 7 see board of governors of the federal reserve system, federal reserve issues fomc statement, april 29, 2020 ; see board of governors of the federal reserve system, federal reserve issues fomc statement, june 10, 2020. 8 see board of governors of the federal reserve system, federal reserve announces extensive new measures to support the economy, march 23, 2020. 9 see board of governors of the federal reserve system, federal reserve issues fomc statement, june 10, 3 / 4 bis central bankers'speeches 2020. 10 for announcements of the various programs, see board of governors of the federal reserve system, federal reserve board announces establishment of a commercial paper funding facility ( cpff ) to support the flow of credit to households and businesses, march 17, 2020 ; board of governors of the federal reserve system, federal reserve board announces establishment of a primary dealer credit facility ( pdcf ) to support the credit needs of households and businesses, march 17, 2020 ; board of governors of the federal reserve system, federal reserve board broadens program of support for the flow of credit to households and businesses by establishing a money market mutual fund liquidity facility ( mmlf ), march 18, 2020 ; board of governors of the federal reserve system, federal reserve announces extensive new measures to support the economy, march 23, 2020 ; board of governors of the federal reserve system, federal reserve will establish a facility to facilitate lending to small businesses via the small business administration ’ s paycheck protection program ( ppp ) by providing term financing backed by ppp loans, april 6, 2020 ; and board of governors of the federal reserve system, federal reserve takes additional actions to provide up to $ 2. 3 trillion in loans to support the economy, april 9, 2020. 4 / 4 bis central bankers'speeches

sent members of congress a thoughtful analysis of housing policy11 by staff at the board of governors in washington that evaluates a number of these same issues. what i would like to do today is to elaborate on some specific proposals we have developed in new york, in order to try to persuade you that there are workable solutions to our housing problems at costs that i deem very reasonable relative to the economically inefficient path we are on. of course, i am open to other promising alternatives that would address the same issues. i note also that a truly comprehensive approach would also include long - term reform – including reform of fannie mae and freddie mac – to put housing finance on a more stable footing and to equip the market to deal more effectively with any future systemic shocks. but i will not discuss these issues in - depth today. access to mortgage credit restoring demand for housing requires new mortgage debt to be offered to creditworthy borrowers on reasonable terms. this is important because residential mortgage lending terms tightened significantly during the crisis, and have not eased subsequently. 12 indeed, over 50 percent of all new loans – and 70 percent of new prime conforming loans – go to borrowers with fico scores of 760 or above, compared with about 30 percent before the crisis. borrowers with credit scores of 720 or less now make up less than 30 percent of new originations, although they represent 52 percent of the population with credit scores. steps should be taken to improve households ’ access to credit. currently, lenders are discouraged from making new prime conforming loans due to excessively stringent put - back rules on these mortgages. such rules give fannie mae and freddie mac broad scope to force the originator to repurchase at par loans that go delinquent if there are any errors in the mortgage loan paperwork – even if the error has no direct link to the delinquency. it is essential that lenders are accountable for the representations they make and are appropriately penalized for any misrepresentations. however, doing this via a blanket “ the national and regional economic outlook, ” october 24, 2011, and “ securing the recovery ” november 17, 2011. board of governors of the federal reserve system. 2012. white paper, “ the u. s. housing market : current conditions and policy considerations, ” january 4. according to the senior loan officer opinion survey. bis central bankers ’ speeches repurchase regime leads to bad outcomes at a