“During the financial crisis of 2008-2009, officials from both the George W. Bush and Barack Obama administrations joined Wall Street bankers to condemn calls from the Left to nationalize all or part of the banking system, which had failed spectacularly. But since then the government has quietly and almost completely taken over the U.S. home mortgage industry because banks and other for-profit lenders refuse to lend money to homeowners without the guarantees and other support the government provides.
In fact, about 90% of all new mortgages are backed by the government, three times more than in 2006. Fannie Mae and Freddie Mac, the taxpayer-controlled, semi-private housing giants, were saved with infusions of $187.5 billion of public funds starting in 2008, and now guarantee 69% of new mortgages, up from only 27% in 2006, while the Federal Housing Administration and the Department of Veteran’s Affairs back about 21% of mortgages, up from just 2.8% in 2006…”
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