BND is the only state-owned bank of North Dakota and it is in news because of pitching to make its own home mortgage loans in the rural areas as it also has to prop up the private banking industry of the state. On Thursday, the North Dakota House voted 63-31 for the approval of this plan.
George Keiser, Bismarck Rep said that an increase in federal regulation has made it impractical for many rural banks to make home mortgage loans. This venture will be applicable for two years and only for the borrowers, living in the home. The bank isnt allowed to make loans bigger than $200,000.
Bismarck Rep. Dave Weiler said that the proposal has critics and in this way the bank could end up with a load of risky loans.
Bill now goes back to North Dakota Senate