From The Hill
The United States government today is one of the largest consumer lending institutions in the world. Its expansive loan portfolio has been growing for years with little attention given to designing a coordinated approach for administering its lending activities. With a credit portfolio now exceeding $4 trillion and comprising more than 100 loan programs dispersed across 20 or so federal agencies, the government must take a serious look at how it plans for and operates its many credit programs.
The United States spends about $3 billion a year managing its portfolio of loans. It is hard to imagine a more disparate jumble of agencies that now make loans to home buyers, college students, small business owners, and various other borrowers. The government and its citizens would benefit significantly from taking a more coordinated approach. The creation of a single credit entity that consolidates the credit actions performed by the various agencies doing the job today would result in significant savings relative to the current approach. It would also realize some significant efficiencies to improve outcomes for borrowers and the government.