Home > Uncategorized > Flashback: Private Sector Not GSEs Triggered Crisis | The Big Picture

Flashback: Private Sector Not GSEs Triggered Crisis | The Big Picture

October 13, 2012 Leave a comment Go to comments

Flashback: Private Sector Not GSEs Triggered Crisis | The Big Picture.

A reminder from 4 years ago today: Look who were the biggest underwriters of subprime — not Fannie & Freddie, not driven by the CRA, not Congress, but private sector banks.

The data, from the Federal Reserve Board, shows:

• More than 84 percent of the subprime mortgages in 2006 were issued by private lending institutions.

• Private firms made nearly 83 percent of the subprime loans to low- and moderate-income borrowers that year.

• Only one of the top 25 subprime lenders in 2006 was directly subject to the housing law that’s being lambasted by conservative critics.

 

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