The US automobile industry has been nationalized, the banking sector has been nationalized, medical care has been nationalized and now the residential housing sector has been nationalized. With the Treasury departments recent announcement that it will provide unlimited backing to Freddie Mae and Fannie Mac these two organizations now underwrite almost 80% of all new mortgage lending in the US – taking virtually the entire potential losses from the US residential mortgage sector onto the Federal governments balance sheet, a market that represents:

  • $14.6 trillion in total U.S. mortgage debt outstanding
  • $8.9 trillion in total U.S. mortgage-related securities.
  • $7.5 trillion in pooled mortgages, of which about $5 trillion is securitized or guaranteed by Freddie Mae, Fannie Mac or FHA

Equicapita is a Calgary based income trust which manages an RRSP and TFSA eligible SME private equity fund for retail investors.