Irresponsible mortgages have taken the US economy down. So one might think that the lesson has been learned.
But this is not the case.
In fact, one of the worst instigators of bad mortgages right now is the US government, through the Government National Mortgage Association (GNMA or ‘Ginnie Mae’).
While public hatred is mostly directed elsewhere, GNMA has quietly morphed into a market-distorting giant over the past two years, securing $ 826 billion in mortgages with taxpayer dollars.
This could very well be one of the biggest issues right now for the US real estate market, and therefore for the US economy as a whole.
It’s because, according to a report from the Center for Public Integrity, many of its guarantees are extremely questionable
. It is therefore as if we had learned nothing from the crisis and the GNMA continues to boost us towards the next real estate disaster.
So avoid these names and spread the word:
Note that the “comparison ratio” shown in the following data is a comparison of a lender’s default rates with other lenders in a geographic area, for Federal Housing Association loans. For example, if a lender has a comparison ratio of 200%, it is defaulting at twice the rate of its competitors.
These are the highlights of extensive research conducted by the Center for Public Integrity.