Building the dream : a history of federal policy intervention in home mortgage finance

This paper traces the effects which federal policy has had on home mortgage finance in the United States. In the past, the phases of intervention have been described as 1) the New Deal responses to the Great Depression, 2) the creation of the Government- Sponsored Enterprises and promotion of the secondary market, and 3) the deregulation of the banking industry. This paper uses the historical backdrop to examine the current era of intervention, including the Making Home Affordable initiative. The paper concludes with policy recommendations that tie past experience with current problems and explores shared equity homeownership as a sustainable model for the future.