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  • Jonathan Poyer

The Omnibus Bill and Housing

Let’s look under the hood of the new omnibus bill for a second, as it relates to housing. Just taking a peek at a few things that stood out:


page 1745

“New commitments to guarantee single family loans insured under the Mutual Mortgage Insurance Fund”

$400,000,000,000

page 1746

“New commitments to guarantee loans insured under the General and Special Risk Insurance Funds”

$30,000,000,000

page 1747

​“New commitments to issue guarantees to carry out the purposes of section 306 of the National Housing Act”

$900,000,000,000

That is a total of $1.33T (that is $1,330 with another 9!!! zeroes) to guarantee mortgage loans.


The Agency MBS market is $5.5T

The total value of private residential real estate is around $43T


Fun times with math:

  • A stack of a trillion dollars would reach 1/4th the way to the moon (it's true)

  • One trillion seconds equals 32,000 years

  • One trillion mm = going around the world 25 times…almost as wide as the sun


In short: there are backstops holding up the mortgage market.

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