How Governments Around the World Help Homeowners Enter and Remain in the Middle Class
Many conservatives critical of the federal government’s role in mortgage markets claim that the United States is one of the only countries in the world that provides extensive government guarantees in its mortgage system. They point in particular to Europe, which does not have government guarantees for mortgage securitization analogous to those the U.S. government provides for mortgage-backed securities issued by Fannie Mae, Freddie Mac, and Ginnie Mae, and argue that European governments don’t provide guarantees in their mortgage markets.
This argument is wrong, and in fact all European governments as well as Canada provide guarantees in their mortgage markets by guaranteeing the bank obligations that fund mortgages in these countries including bank deposits and covered bonds (also sometimes called mortgage bonds).
David Min is Associate Director of Financial Markets Policy at the Center for American Progress.
For more on this issue, see:
To speak with our experts on this topic, please contact:
Print: Liz Bartolomeo (poverty, health care)
202.481.8151 or email@example.com
Print: Tom Caiazza (foreign policy, energy and environment, LGBT issues, gun-violence prevention)
202.481.7141 or firstname.lastname@example.org
Print: Allison Preiss (economy, education)
202.478.6331 or email@example.com
Print: Tanya Arditi (immigration, Progress 2050, race issues, demographics, criminal justice, Legal Progress)
202.741.6258 or firstname.lastname@example.org
Print: Chelsea Kiene (women's issues, TalkPoverty.org, faith)
202.478.5328 or email@example.com
Spanish-language and ethnic media: Rafael Medina
202.478.5313 or firstname.lastname@example.org
TV: Rachel Rosen
202.483.2675 or email@example.com
Radio: Sally Tucker
202.481.8103 or firstname.lastname@example.org