June 15 , 2007
On May 30, 2007, the country lost a "giant" in the field of banking and affordable lending. Preston Martin.
Preston Martin, served as vice chairman of the Federal Reserve Board from 1982 to 1986. He was also the first central bank governor appointed by President Ronald Reagan. Prior to that, in 1969 he was appointed by President Nixon as chairman of the Federal Home Loan Bank Board, where Martin was instrumental in the creation of the Federal Home Loan Mortgage Corporation — now known as Freddie Mac.
Soon after the creation of Freddie Mac, Martin (being the true visionary that he was) saw the need for a vehicle to serve the lending needs of families not being adequately served by the conventional banking/financing market. He played a critically important role in lending his vision, support and well-earned respect to the creation of Neighborhood Housing Services of America, and an interagency task force known as the Urban Reinvestment Task Force — that in 1978 became chartered by the U.S. Congress as the Neighborhood Reinvestment Corporation — now doing business as NeighborWorks America. Preston Martin spoke at a 25th anniversary dinner event for NeighborWorks America – and was featured in an article in the corporation’s publication, Bright Ideas in the summer of 2003. In remembrance of Preston Martin, and his significant contributions to the NeighborWorks system, that article is reprinted below:
GL A N C I NG BACK -- CREATING OPPORTUNITY
Congratulations to Neighborhood Reinvestment on its 25th anniversary!
It has been my good fortune and privilege to participate in the start-up and development of several organizations whose visions featured a better life for people living in older urban, suburban and rural neighborhoods.
Throughout my career, which included government service and private enterprise, I seized opportunities to initiate and support a number of public/private institutions: Freddie Mac, Urban Reinvestment Task Force, PMI Mortgage Insurance, Neighborhood Housing Services of America, Social Compact, Operation HOPE, and Neighborhood Reinvestment Corporation.
These institutions provide financial instruments including low- (and no-) down-payment mortgages, adjustable-rate mortgages, and new kinds of mortgage-backed securities.
Community-development investing is not just about lending or government policies. It is about a
matrix of partner people — government officials, neighborhood leaders, lenders, nonprofit and church leaders, and local business people — creating opportunity where little has existed for years.
These partnerships are saving families and bringing back house after house and block after block and job after job in our older neighborhoods.
They are establishing creative new methods of financing and providing new affordable housing, family financial education and other opportunities for this country’s struggling families.
Today, the privilege of serving with the leaders of Neighborhood Reinvestment Corporation, Operation HOPE, Neighborhood Housing Services of America, and Social Compact make the post-Federal Reserve years have optimum satisfaction. Such service helps answer that old
question, "What are you on this planet for?"
– Preston Martin
Chairman, Martin Associates
Former Vice Chairman, Federal Reserve Board
