May 2012
The Issue’s Highlight
Spotlight on the government’s growing monopoly of consumer lending and private debt: Outstanding consumer debt totals over $12 trillion, constituting 44 percent of all outstanding private debt (both consumer and business). Home mortgages ($9.8 trillion) and student loans ($0.9 trillion) comprise the two largest asset classes within the consumer debt sector. In 2011, the Government Mortgage Complex accounted for 88 percent of all first-mortgage originations in the United States, with the government also controlling an estimated 90 percent of the student loan market. The government’s growing dominance in the home mortgage and student loan categories is cause for concern, posing a threat to private investors, borrowers, and taxpayers.
The month’s features:
Spotlight on insolvency
FHA’s Position Worsened in April, with an Estimated Current Net Worth of –$13.79 Billion and a Capital Shortfall of $33–52 Billion
Spotlight on delinquency
Total Delinquency Rate Increased in April to 15.97 Percent Because of Increase in Thirty-Day Delinquencies; Serious Delinquency Rate Eased to 9.42 Percent
Spotlight on best price execution
The Government Mortgage Complex’s Ginnie Brands Demonstrate Pricing Dominance over Fannie Mae
Spotlight on the government mortgage complex’s 2011 market share
Government Mortgage Complex Accounted for 88 Percent of All 2011 First-Mortgage Originations
Spotlight on the government’s growing monopoly of consumer lending
Government-Controlled Home Mortgage and Student Loan Asset Classes Account for 86 Percent of Outstanding Consumer Debt
Spotlight on the road to FHA fiscal reform
Policy Changes Needed to Implement Fiscal Reform Principle 4
The road map to FHA reform
Specific Steps to Reform and the Status of Each
