Loans at Home history

Following Doctor Martin Luther King Jr.’s assassination in 1968, Congress was approved the Fair Housing Act, which stated that people looking to rent or own housing could no longer legally be discriminated against due to their race or national origin.

In 1972, Fannie Mae and Freddie Mac both began to purchase conventional mortgages that were not guaranteed or insured by the FHA or VA. Instead of seeking approval from the FHA or VA, loans could be insured by Private Mortgage Insurance (PMI) companies.

To increase transparency in the lending process, the Home Mortgage Disclosure Act was passed in 1975.

But with an adjustable-rate mortgage, the borrower’s interest rate changes with the annual average, so they’re paying less in interest by 1989, when rates have dropped to 10%. For example, let’s say a borrower signed a mortgage with a 16.63% interest rate – the annual average in 1981.

But with an adjustable-rate mortgage, the borrower’s interest rate changes with the annual average, so they’re paying less in interest by 1989, when rates have dropped to 10%.

The Great Recession was caused by a number of different factors, including a United States housing bubble which peaked in July 2006, subprime lending, and a lack of liquidity.

The housing crisis is viewed as the primary cause of the Great Recession, which officially began in December 2007.

In September of 2008, both Fannie Mae and Freddie Mac were placed under government receivership.