Private Sector Loans Triggered the Crisis

Here is a blast from October 2008 past: This chart as to who were the underwriters of the subprime loans.

Federal Reserve Board data show that:

-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.

Here is the table of underwriters:

click for larger table:


hat tip Econbrowser

Private sector loans, not Fannie or Freddie, triggered crisis
David Goldstein and Kevin G. Hall
McClatchy Newspapers, October 12 2008

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