Question of the Day
In 2017, what portion of new single-family mortgages were insured against default by taxpayers?
Per a recent report by the U.S. Government Accountability Office: "Federal support of the housing finance market remains significant even though the market has largely recovered since the 2007-2009 financial crisis. While down from the peak in 2009, in 2017, the federal government directly or indirectly guaranteed about 70 percent of single-family mortgage originations." The report also notes that "mortgage lending standards have loosened slightly in recent years, which could increase the risk of borrower default -- especially in a recession or downturn in the housing market -- and losses to federal entities." As the report explains, these "risks" are ultimately borne by "taxpayers."
DocumentationGovernment Housing Finance