Home Loans From Washington? - Room for Debate - NYTimes.com At a time when low rates have led to a boom in new and refinanced mortgages, recent moves by the Federal Reserve have allowed banks to make even more profit off mortgage-backed bonds than they did previously. And those rates could be a half-point lower if banks were satisfied with the profit margins of just a few years ago. But should the government consider cutting out the middleman, as it does with student loans, and issue mortgages itself?