State Mortgage Agency Offers More Loans

Fewer banks are willing to make home loans these days, and the State of New York Mortgage Agency, or SONYMA, is picking up some of the slack. The agency says the total value of loans it's bought so far this year is $466 million. That's up 74 percent over last year. Priscilla Almodovar is SONYMA's chief executive.

ALMODOVAR: In terms of why we're seeing the demand is the private sector is constricting all of their lending. And that includes, too, first time home owners, middle, moderate income families buying their first home.

REPORTER: Like Fannie Mae and Freddie Mac, SONYMA sets lending guidelines for banks and then buys home loans from them. Almodovar says SONYMA is doing its best to purchase loans fast and bring liquidity to banks. It typically takes 70 to 80 days for the agency to acquire a new home loan.