The GSE charters mandate that Fannie Mae and Freddie Mac “promote access to mortgage credit throughout the Nation.” Nonetheless, GSE market shares vary widely across the fifty States, from 17% in Eagle Pass, TX to 67% in Boulder, CO.
Several broad geographic patterns stand out. GSE shares are lowest in the South, Southwest, and Puerto Rico. The characteristics most strongly associated with lower area GSE shares are lower incomes (relative to national levels), smaller loan amounts, more manufactured housing, and a larger Black and Hispanic population. Low GSE shares are also more common where smaller lenders play a larger role and where there are fewer low-income borrowers (defined relative to area median income).
These patterns are evident in maps of GSE shares, in area-level plots of GSE shares versus explanatory factors, and when examining the characteristics of areas with the lowest and highest GSE shares. While this descriptive analysis does not establish causal relationships, the findings reveal substantial regional disparities that warrant further investigation.