The approval of the housing microfinance product as a type of microfinance loan is important as it will enjoy the same incentives as regular microfinance loans. Among others, housing microfinance does not require collateral and documentary requirements are much simpler. In other words, this housing microfinance addresses the usual barriers that the poor face in accessing housing finance.
As we rely even more heavily on these institutions in the United States and around the world, we must do all that we can to ensure their resilience, even as our financial system continues to evolve rapidly and in ways that we cannot fully predict. In short, I think Pudd’nhead Wilson would agree that that is one important basket.