Second, the shutdown of the private mortgage-backed securities market has placed greater pressures on bank balance sheets not only to provide credit to borrowers with damaged credit histories, but also to provide so-called jumbo mortgages that are originated in amounts that are over the conforming loan limits applicable to loans sold to or guaranteed by the governmentsponsored enterprises (GSEs) Fannie Mae and Freddie Mac and by Ginnie Mae.
Based on the recommendations of the Malegam Committee, the Reserve Bank of India has issued detailed guidelines permitting categorisation as priority sector advance, of bank credit to certain eligible MFIs.