Article: Annunzio will push thrifts to provide more home loans

WASHINGTON Despite warnings by savings and loan industry observers, Rep. Frank Annunzio (D-Ill.) said he will push hard to raise the proportion of loans that S&Ls be required to commit for residential housing.

Annunzio, chairman of the House Banking subcommittee that is writing a bill to rescue and reform the nation's S&L industry, said he will push for an 80 percent ratio of loans for one- to four-family housing, up from the current 60 percent.

Several S&L observers, such as Robert Litan of the Brookings Institution and consultant Bert Ely, have said that raising the ratio, called the Qualified Thrift Lending test, or QTL, will increase risks to thrifts in times of sharply rising ...

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