Private Sector Loans Triggered the Crisis
Posted By Barry Ritholtz On December 16, 2010 @ 4:59 pm In Bailouts,Credit | Comments Disabled
Here is a blast from October 2008 pas [1]t: 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:
[2]
>
hat tip Econbrowser [3]
Source:
Private sector loans, not Fannie or Freddie, triggered crisis [4]
David Goldstein and Kevin G. Hall
McClatchy Newspapers, October 12 2008
http://www.mcclatchydc.com/2008/10/12/53802/private-sector-loans-not-fannie.html
Article printed from The Big Picture: http://www.ritholtz.com/blog
URL to article: http://www.ritholtz.com/blog/2010/12/private-sector-loans-triggered-the-crisis/
URLs in this post:
[1] October 2008 pas: http://www.ritholtz.com/blog/2008/10/private-sector-loan-losses-vs-fanniefreddie/
[2] Image: http://www.ritholtz.com/blog/wp-content/uploads/2010/12/ffcrajazz1.jpg
[3] Econbrowser: http://www.econbrowser.com/archives/2008/10/cra_fannie_and.html
[4] Private sector loans, not Fannie or Freddie, triggered crisis: http://www.mcclatchydc.com/2008/10/12/53802/private-sector-loans-not-fannie.html
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