Since the mortgage meltdown began in the summer of 2007, many observers have commented that government policy has seemed to lag events. Predictions about the scope of the problems in the housing and mortgage markets, and particularly how they might affect the health of the financial system, have consistently been too optimistic. One of the reasons for this is the difficulty of obtaining accurate information, even for policymakers. Fannie and Freddie, for example, have been making subprime or other nontraditional loans for at least a decade but reporting them as prime loans. These loans total approximately $1.6 trillion. As a result, 44 percent of all loans, or a total of 25 million loans, are outstanding subprime and other nontraditional loans--more than double what anyone understood at the beginning of the mortgage market collapse. Edward Pinto, a former chief credit officer for Fannie Mae, has done an extensive study of the scope of the mortgage problem and will report at this conference on what President Barack Obama will confront when he takes office on January 20.
What's new on AEI
|AEI Election Watch 2014: What will happen and why it matters|
|A nation divided by marriage|
|Socialist party pushing $20 minimum wage defends $13-an-hour job listing|
We welcome you to join us for a panel discussion of the undersea military competition occurring in Asia and what it means for the United States and its allies.
AEI’s Election Watch is back! Please join us for two sessions of the longest-running election program in Washington, DC.
We welcome you to join us at AEI for a discussion of what’s next for the Common Core.
Please join AEI for a discussion examining each candidate’s platform and prospects for victory and the impact that a possible shift toward free-market policies in Brazil might have on South America as a whole.