Banks can issue mortgages without fractional banking… Investors pool capital and start a bank. The bank loans money for homes and makes a profit from interest.
I suppose, but wouldn't really need a bank for that. And you need a lot of money - more money I'd wager than investors will want to pool together.
But, I guess if your goal is less people being able to get mortgages and loans, maybe it will be a good thing!
Banks only do community and jumbo in the us. Most mortgages are owned by the federal government
The federal government originates mortgages? TIL
Apparently the Fed owns 1/3 of all mortgage bonds.