Not All Housing GSEs Are Alike: An Analysis of the Federal Home Loan Bank System and the Foreclosure Crisis

While the financial crisis of 2008 ultimately affected the range of U.S. financial institutions, it began with practices in home ownership finance. The Federal Home Loan Bank (FHLBank) System was the first instrumentality created by the U.S. government, in 1932, to sustain affordable home ownership finance. In this article, the authors ask what role, if any, the FHLBanks played in the subprime lending and securitization practices that precipitated the current crisis. The authors analyze publicly available FHLBank financial data in terms of a framework focused on the System's assets: advances; mortgage loans acquired from members; and investments, particularly in mortgage-backed-securities. They conclude that the FHLBanks did not contribute significantly to problematic practices. Nonetheless, they recommend consideration of three reforms to the FHLBanks to ensure a return to effective regulation and responsible, affordable home ownership finance.     

Adolescence terminable and interminable: When does adolescence end?

The question of when adolescence ends and young adulthood begins is considered. Throughout, it is addressed in terms of the theory of broad and narrow socialization, which emphasizes the cultural context of development. The question is approached from cognitive, emotional, and behavioral perspectives, then from the perspective of role transitions (such as marriage and parenthood). The idea of an extended path from adolescence to adulthood is discussed, and the concept of emerging adulthood is presented. It is suggested that in most non-Western cultures the entrance to adulthood is socially defined and marked by a social event, usually marriage. In the contemporary West, however, where there is a strong emphasis on independence and individualism, the entrance to adulthood is defined and marked individually. Consequently, it is likely to be based on the achievement of residential and financial independence as well as on the attainment of cognitive self-sufficiency, emotional self-reliance, and behavioral self-control. Thus in the contemporary West the passage from adolescence to young adulthood is a process that is gradual and may take many years.This research was funded partly by an institutional training grant from the National Institute of Mental Health 5T32 MH14668-14, for the Clinical Research Training Program in Adolescence, jointly sponsored by the Department of Psychiatry at Northwestern University and the Committee on Human Development at the University of Chicago.Received Ph.D. from University of Virginia, Research interests include adolescent reckless behavior, adolescents' uses of media, and the transition to adulthood.Research interests include the transition to adulthood and development in young adulthood.