Beating back the GSE meme

The Big Picture's all over it again:

Consider this Federal Reserve Board data, compiled by McClatchy. It shows that:

• More than 84% of the subprime mortgages in 2006 were issued by private lending institutions.
• Private firms made nearly 83% of the subprime loans to low- and moderate-income borrowers that year.
• Only one of the top 25 subprime lenders in 2006 was directly subject to the CRA [Community Reinvestment Act];
• Only commercial banks and thrifts must follow CRA rules. The investment banks don't, nor did the now-bankrupt non-bank lenders such as New Century Financial Corp. and Ameriquest that underwrote most of the subprime loans.
• Mortgage brokers, who also weren't subject to federal regulation or the CRA, originated most of the subprime loans. 

And so on...