Chart 2: Key Legislation and Regulatory Reforms Helped Shape the Mortgage Cycle
Timeline
Outstanding Mortgages as a Share of GDP (percent)
Notable Events
1952
16.23
 Fannie Mae becomes a government-sponsored entity; Ginnie Mae remains a federal agency (1968)
1953
17.23
 Congress charters Freddie Mac (1970)
1954
19.73
 Regulation Q phased out (1980-1986)
1955
21.10
 Rapid growth in residential mortgage securitizations (1980s)
1956
22.47
 Mortgages allowed to have variable interest rates and balloon payments (1982)
1957
23.20
 Tax Reform Act of 1986
1958
25.00
 Rapid gowth in nonprime lending (2000-2005)
1959
25.59
 Historically low rates on 30-year fixed-rate mortgages (2003-2004)
1960
26.76
1961
28.14
1962
28.60
1963
29.80
1964
30.35
1965
30.39
1966
29.44
1967
29.44
1968
28.82
1969
28.26
1970
27.60
1971
27.55
1972
27.90
1973
27.85
1974
28.13
1975
28.14
1976
28.42
1977
29.77
1978
30.96
1979
32.29
1980
33.25
1981
31.93
1982
31.70
1983
31.60
1984
31.63
1985
34.22
1986
36.80
1987
38.43
1988
40.09
1989
41.38
1990
43.08
1991
44.66
1992
44.96
1993
45.15
1994
44.85
1995
44.96
1996
45.19
1997
45.15
1998
46.22
1999
47.59
2000
48.59
2001
51.55
2002
55.82
2003
60.88
2004
64.71
2005
69.35
Note: GDP = gross domestic product.
Sources: Bureau of Economic Analysis for GDP data, and Federal Reserve Board Flow of Funds for household and nonprofit organizations home mortgages outstanding data (includes loans for home equity lines of credit and home equity loans secured by junior liens).