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    0 starsRich | Shared With: Everyone - Jul 19 2009 | the, seattle, mortgage, seattle real estate, real estate, housing
    Seattle's Federal Home Loan Bank in big money trouble again

    The collapse of this behind-the-scenes "banks' bank" could have a big effect. Some of the area's biggest lenders, like WaMu (now Chase) and Bank of America are no longer using FHLB, which will reduce its supply of money. In addition, cuts to programs have affected the bank's loans to developers of affordable housing, as well as to first-time buyer loan programs such as Home$tart.

    Quoted: Don't look now, but another big Seattle-based bank is struggling under the weight of distressed mortgage-backed securities, declining loan business and the deflated housing market. This time it's not a consumer-oriented bank such as Washington Mutual, which collapsed last year, but the Federal Home Loan Bank of Seattle, a behind-the scenes funder of mortgage loans that faces its second major financial crisis in five years.

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