In 2011, the Government Mortgage Complex accounted for 88 percent of all first-mortgage originations in the United States, with the government also controlling an estimated 90 percent of the student loan market. The government’s growing dominance in the home mortgage and student loan categories is cause for concern, posing a threat to private investors, borrowers, and taxpayers.

This event will address the problems and improvements needed for student loans, beginning with a keynote presentation by former secretary of education Bill Bennett.

These three studies are: 1. Sizing Total Exposure to Subprime and Alt-A Loans in the U.S. First Mortgage Market as of 6.30.2008, 2. Sizing Total Federal Government and Federal Agency Contributions to Subprime and Alt-A Loans in the U.S. First Mortgage Market as of 6.30.2008, and 3. High LTV, Subprime and Alt-A Originations Over the Period 1992–2007 and Fannie, Freddie, FHA, and VA‘s Role.

As policymakers continue their efforts to reduce the government’s role in the currently nationalized housing market, the broadly available and deep subsidies provided to the five divisions of the Government Mortgage Complex continue to distort the marketplace and thwart these efforts.

Few recognize just how troubled this government agency really is. When measured against the accounting system used by private mortgage insurers, the FHA is deeply insolvent, with a capital shortfall of tens of billions of dollars. If it were a private firm, state regulators would immediately shut it down. 

Housing markets will continue to go sideways, on average, during 2012, then they will begin their cyclical recovery in 2013.

Discolsures contained in SEC complaints further validate the necessity to look behind Fannie and Freddie's characterization of subprime loans.  

The dominant financial and economic fact of 2011 is that we are still living in the wake of the great 21-st century bubble. The dominant problem with being in the wake of the bubble is that we cannot escape Pollock's Law of Finance, which states: Loans that cannot be paid will not be paid.