Open AccessThe Subprime Mortgage Reforms: The Case of Us Market
Author(s) -
Gurcharan Singh,
Edward Sek Khin Wong,
Jee Yoong Folk
Publication year - 2009
Publication title -
research in applied economics
Language(s) - English
Resource type - Journals
ISSN - 1948-5433
DOI - 10.5296/rae.v1i1.300
Subject(s) - market liquidity , government (linguistics) , financial system , secondary mortgage market , business , mortgage underwriting , public policy , mortgage insurance , economics , finance , economic growth , linguistics , philosophy , casualty insurance , insurance policy
The downfall of the mortgage industry in US has seen fingers being pointed to the government sponsored entities (Fannie Mae and Freddie Mac), while the roots cause of the formation of these entities were never closely followed. Originally the creation of the GSE was to create liquidity in the mortgage industry as part of public policy in providing housing for the middle and lower income group. Over time, resulting from a weak regulated environment saw the GSE suffering and now this left questioning the effectiveness of the initial policy