1821) A History of

Beginning in the late 1970s, policymakers enacted a series of legislative and regulatory changes that, by 1985, combined to dismantle the New Deal-era system of housing finance. These policy changes fundamentally restructured the way that Americans accessed credit for homeownership from primarily borrowing via long-term, fixed-rate mortgages from local, federally insured S&Ls that collected deposits at a regulated cost, to increasingly borrowing through adjustable-rate mortgages issued by unregulated brokers who then sold those mortgages to investors in a secondary market, typically through an intermediary such as Fannie Mae or Freddie Mac. “Dream Deregulated ” argues that this transformation of housing finance undermined the progressive intent of the open housing and community reinvestment initiatives of the 1960s and 1970s by making housing credit less stable for all borrowers, relative to the New Deal system, and by largely disconnecting housing finance from the institutional structure that the civil rights initiatives were designed to regulate. It further argues that policymakers pursued broad deregulation of housin