The New York Federal Reserve, one of the nation’s top financial institutions, is helping banks get out of debt with the $600 billion it spent on mortgage-backed securities.
The agency announced the program Wednesday.
In a press release, the agency noted that it was “a significant step toward providing a stable, low-interest loan portfolio to eligible borrowers that are financially ready for an affordable home loan.”
The announcement came just days after the New Jersey governor and the president of the Federal Reserve Board urged the Federal Housing Finance Agency to begin buying up homes that were on the verge of foreclosure.
That move could put millions of Americans out of their homes.
The agency has said that more than 40 million people are currently on the books with outstanding mortgage debt.
Mortgage-backed and other mortgage securities were first purchased in the wake of the 2008 financial crisis.
While the market for the securities has recovered since the housing market crash, interest rates have been stuck at historically low levels.
The Fed has been pushing to boost the money supply to boost demand, as well as reduce the nation to a low-growth state.