Government doubles down To expand
ownership to homebuyers with shaky credit, government increasingly has backed subprime and nonprime mortgages. By 2008, Fannie and Freddie alone held or insured 13.4 million of them while overall, government and its entities guaranteed more than 20 million.
Government ups its skin in
the game The Federal Housing Administration has increased its market share of home purchase loans, from 8 percent in 2007 to 43 43% percent in 2010. 8%
Debt’s climb as a percent
of GDP In 1986, residential mortgage debt accounted for 39 percent of gross domestic product. In 1990, mortgage debt was 50 percent of GDP. In 2007, it was 75 percent. 1986 1999 2007
Government is left holding the
bagBy 2008, half of all mortgages in America — 28 million — weresubprime or nonprime loans. Seventy-four percent of them were guaranteedby government or government-agencies