Expand Your Education with These Courses from
A Consumer Advocate Approach to Real Estate: Course 1.
Time Management: Skills for Sales Success: Part Two.
Expand your education through NAR's REALTOR® University: A Consumer Advocate Approach to Mortgages: Course 2.
Bundle 1: CIPS Core Courses (Non-US Version).
Bundle 2: CIPS Elective Courses (Non-US Version).

Majority of Non-Revolving Credit Held By Federal Government

Have a comment on this article? Share on Facebook!

According to the release, the federal government only holds non-revolving credit. It does not hold revolving credit. The federal government has grown to become the largest holder of non-revolving credit. This was not always the case. In 1990, the federal government held a very small portion of non-revolving credit. Over the years, the decline in the share of non-revolving credit held by depository institutions coincided with an increase in the portion held by finance companies and that was securitized while the share of non-revolving credit held by the federal government remained small. However, in recent years, the percentage of non-revolving credit held by the federal government has soared at the expense of the share of the market held by depository institutions and finance companies.

According to the Federal Reserve Board, non-revolving credit held by the federal government includes student loans originated by the Department of Education under the Federal Direct Loan Program and the Perkins Loan Program, as well as Federal Family Education Program loans that the government purchased under the Ensuring Continued Access to Student Loans Act (ECASLA) that was passed in May 2008. The ECASLA provided the Department of Education with the authority to purchase student loans. The beginning of the steep increase in the share of non-revolving credit held by the federal government that began in 2009 coincided with the passage of the ECASLA and indicates that, in addition to making student loans directly, the federal government purchased student loans in an effort to facilitate market access at a time when private capital on its own grew scarce.

View this original post on the NAHB Eye on Housing blog.

Continue Reading 1 2

Have a comment on this article? Share on Facebook!

Want instant access to great articles like this for your blog or newsletter? Check out our 30-day FREE trial of REsource Licensed Real Estate Content Solutions. Need easy stay-in-touch e-Marketing solutions too? Try Pop-a-Note for 99 cents!
Join RISMedia on Twitter and Facebook to connect with us and share your thoughts on this and other topics.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Copyright© 2016 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Content on this website is copyrighted and may not be redistributed without express written permission from RISMedia. Access to RISMedia archives and thousands of articles like this, as well as consumer real estate videos, are available through RISMedia's REsource Licensed Content Solutions. Offering the industry’s most comprehensive and affordable content packages. Click here to learn more! http://resource.rismedia.com

Our Latest News >>