Article: FCA Withdraws Plan for Lending In Disaster Areas.(Farm Credit Administration)

Farm Credit System lenders that have long been angling for permission to make more home loans saw a window of opportunity in the aftermath of Hurricane Katrina.

But as its regulator was trying to make the case that the system's lenders should be allowed to make loans in federally declared disaster areas, the banking industry began flexing its considerable lobbying muscle -- and the idea was soon abandoned.

Early last week bank trade groups got wind that the Farm Credit Administration had been seeking to attach an amendment to an agriculture appropriations bill that would let Farm Credit System lenders make home loans in communities of up to 50,000 ...

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