Bank of ND could make home loans in rural areas
The state-owned Bank of North Dakota is pitching to make its own home mortgage loans in rural areas, and it has the support of the state's private banking industry.
The North Dakota House voted 63-31 on Thursday to approve the plan.
Bismarck Rep. George Keiser said an increase in federal regulation has made it impractical for many rural banks to make home mortgage loans.
The legislation approves the venture for two years. The bank can't make loans bigger than $200,000. The bank will lend only to borrowers who are living in the home.
The proposal has critics. Bismarck Rep. Dave Weiler said the bank could end up with a load of risky loans.
The bill now goes back to the North Dakota Senate
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