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"Redlining" and the subprime bubble, cont'd



A failure of the free market? Not exactly (via Bader, emphasis added):

Internal documents show that even late in the housing bubble, [federal-government-sponsored] Fannie Mae was drawn to risky loans by a variety of temptations, including the desire to increase its market share and fulfill government quotas for the support of low-income borrowers.

 

 


Rafael Mangual
Project Manager,
Legal Policy
rmangual@manhattan-institute.org

Katherine Lazarski
Manhattan Institute
klazarski@manhattan-institute.org

 

Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.