High foreclosure rates across the country as well as a faltering financial sector has dictated government involvement in the mortgage industry. This involvement has facilitated growth in both residential and commercial real estate such as Minnesota real estate and has created more favourable and secure lending situations for financial institutions. All this has been done in order to stimulate economic growth in the United States.
The growth of the federal government's involvement since the onset of the mortgage crisis has created a situation in which the government has become a substantial pillar to the survival of the mortgage industry. Government has taken on much of the risk forme