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SUBPRIME LENDING 

Funding for Mortgages

The sources of funds for mortgages changed over the decades.
IN PERCENT, BY SOURCE

Savings & loans Government-sponsored enterprises
60%
54%
50

40
30
20
4%
10
0
’70 ’80 ’90 ’00 ’10 ’70 ’80 ’90 ’00 ’10

Commercial banks & others Non-agency securities
60%
50

40
29%
30
13%
20

10
0
’70 ’80 ’90 ’00 ’10 ’70 ’80 ’90 ’00 ’10

SOURCE: Federal Reserve Flow of Funds Report

Figure .

RTC officials soon concluded that they had neither the time nor the resources to
sell off the assets in their portfolio one by one and thrift by thrift. They turned to the
private sector, contracting with real estate and financial professionals to securitize
some of the assets. By the time the RTC concluded its work, it had securitized  bil-

lion in residential mortgages. The RTC in effect helped expand the securitization of
mortgages ineligible for GSE guarantees. In the early s, as investors became
