History 1807 Lecture Notes - Lecture 6: Fannie Mae, Federal Housing Administration, Government National Mortgage Association
28 Sep 2016
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Document Summary
The roots of the financial crisis are from the american dream. Homeownership was encouraged, people were enticed to get homes to show success. Irony is that homeowners end up conforming to society because they have to invest so much money in the house. Irony that people thought they were being individuals by getting a house and their own little slice of america, but everyone else did the exact same thing! People thought they earned their way to these homes through work but realistically it"s from government intervention. Government is dependent on you buying a house because it fuels the economy. Great depression was fundamental shift in how the mortgage world worked. Previously, you would buy a house with just money. People were under impression that you only bought stuff you had the money to buy. Mortgages were only given to people with ability to pay back. Mortgages were much shorter term (e. g. 1-5 years)
