Securities Markets in the 1980s: The New Regime, 1979-1984

By Barrie A. Wigmore | Go to book overview

7
The Mortgage Securities Market

An unintended effect of the high interest rates of 1981-1982 was the virtual bankruptcy of the savings and loan industry. The industry had considerable support in Congress, however, which led in 1980 and 1982 to legislation designed to save the industry by broadening its investment powers, increasing its federal deposit guarantee to $100,000, and weakening its accounting. These changes stimulated the growth of the mortgage securities market into one of the most dynamic markets of the late 1980s, and fostered speculative investment activities that precipitated the savings and loan debacle. This chapter will only deal with the beginning of these two developments.

Federal government involvement in home financing began during the 1930s, when the Federal Home Loan Bank System was established to support the thrift industry, the Federal Housing Agency (FHA) was set up to guarantee home mortgages, and the Federal National Mortgage Association (FNMA or "Fannie Mae") was set up to assist secondary markets in mortgages guaranteed by the FHA or the Veterans Administration (VA). In 1968, in an effort to bring the efficiencies of the securities markets to housing, Congress created the Government National Mortgage Association (GNMA or "Ginnie Mae") to guarantee pass-through securities backed by FHA and VA guaranteed mortgages, and the Federal Home Loan Mortgage Corporation (FHLMC or "Freddie Mac") to guarantee pass-through securities backed by conventional mortgage loans originated according to specific, limited criteria. 1 At the same time, provisions were made to transfer ownership of FNMA to the private mortgage market participants using it.

-242-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Securities Markets in the 1980s: The New Regime, 1979-1984
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 424

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.