The GSEs ate my mortgage

If you are a U.S. residential mortgage consumer and you don't want a jumbo (and I don't mean these wonderfully horrible elephants) then the overwhelming likelihood at the moment is that your loan will be funded by a government agency. Freddie and Fannie currently have more than 80% of the mortgage funding market according to AP (link via MSN here). That is double what it was a year ago. And for debt consolidation and refi, amongst other things, there is the FHA. Add in their contribution, which amounts to providing insurance on roughly 10% of new loans, and the GSEs one way or another are supporting over 90% of the market. And that is without counting the FHLBs. We have a problem Houston.