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The U.S. Mortgage Market: Chart Edition

The U.S. Mortgage Market: Chart Edition

Consider first the historical share of mortgage debt outstanding by type of institution. This chart is actually mine from a few years ago. There are three key takeaways from it. First, the GSEs gain most of their market share in the wake of the S&L crisis. Second, the GSEs actually lose market share to the private label security (PLS) providers during the housing boom period. These PLS providers--the red line in the figure below--gained market share during this time by tapping into the Alt-A and subprime mortgage market. Eventually, the GSEs followed suit, but its was the private label security providers who went there first and did most of the damage. Third, the GSEs gain market share back as the PLS supply folded in the crisis.

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