ABSTRACT
This chapter sets out the common themes and significant differences and foregrounds what the UK could learn from what appear to be the effects of sound conduct of business measures at the Veterans Administration (VA) in performing a macroprudential task. The US is unique among western nations in the level of government intervention in the housing market. The Federal Housing Administration was established to provide government insurance to support the sale of mortgages into the general financial market and thus to generate more liquidity in the housing markets. The process of Federal intervention in favour of segregation continued until the 1960s and had a significant effect on the social structure of many US cities. There appear to be a number of possible reasons for the VA’s success including the VA’s oversight of lenders and its selection of property appraisers.
