Mortgages USA history

In 1893, small state banks started to issue bonds as acknowledgments of debts based on the credit and trust of the debtor alone.

15 year to 30 year loans: A typical mortgage before 1930 only had a 3 to 5 year period.

The Federal Housing Administration (FHA) was created in 1934 and was built to protect lenders and reduce lending risk.

Fannie Mae is the nickname for the Federal National Mortgage Association (FNMA). The FNMA was created in 1938 in order to increase the amount of money available to borrowers using mortgage securitization.

The rise of the United States mortgage market occurred between 1949 and the turn of the 21 st century.

In 1968, the Government National Mortgage Association emerged to bring uniformity to the American mortgage market by bringing financial instruments to keep it afloat.

The birth of the Federal Home Loan Mortgage Corporation occurred in 1970 to help promote home ownership.

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.

FHEFSSA is a mouthful. It stands for the Federal Housing Enterprises Financial Safety and Soundness Act, which was passed in 1992 and designed to increase government oversight of the mortgage industry.

In 2003, government mortgage institutions accounted for nearly 43 percent of the total mortgage market.

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.

When applying for a mortgage before 2007, the minimum credit score could be as low as 620.