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If the lending industry had no way to package off the bad loans and sell them there would have been no way for them to make money off the bad loans.
It was a lack of regulatory laws that caused this mess plain and simple.
Anyone who pretends it was anything else is a fool.
Absolutely, LACK OF REGULATION is what caused this. It was caused by REPUBLICANS and Democrats acting like REPUBLICANS.
Wrongo Nancy.. it was caused by Progressive fucksticks who think everyone's problems were going to be solved by selling people houses and financing them with NINA mortgages and making the American taxpayer the backer.
The entities that were truly protected were the mega global banks.
Smaller regional banks, like small businesses, were the victims of this Cronyism.
One of the biggest mistakes Bush made was hiring that slimeball Hank Paulson.
The mortgage crisis from late 2007
Following their mission to meet federal Housing and Urban Development (HUD) housing goals, GSEs such as Fannie Mae, Freddie Mac and the Federal Home Loan Banks (FHLBanks) have strived to improve home ownership of low and middle income families, underserved areas, and generally through special affordable methods such as "the ability to obtain a 30-year fixed-rate mortgage with a low down payment... and the continuous availability of mortgage credit under a wide range of economic conditions." (HUD 2002 Annual Housing Activities Report) Then in 2003-2004 , the subprime mortgage crisis began.[36] The market shifted away from regulated GSEs and radically toward Mortgage Backed Securities (MBS) issued by unregulated private-label securitization conduits, typically operated by investment banks. The shift occurred as financial institutions sought to maintain earnings levels that had been elevated during 2001-2003 by an unprecedented refinancing boom due to historically low interest rates. Earnings depended on volume, so maintaining elevated earnings levels necessitated expanding the borrower pool using lower underwriting standards and new products that the GSEs would not securitize. Thus, the shift away from GSE securitization to private-label securitization (PLS) also corresponded with a shift in mortgage product type, from traditional, amortizing, fixed-rate mortgages (FRMs) to nontraditional, structurally riskier, nonamortizing, adjustable-rate mortgages (ARMs), and in the start of a sharp deterioration in mortgage underwriting standards.[36] The growth of PLS, however, forced the GSEs to lower their underwriting standards in an attempt to reclaim lost market share in order to please their private shareholders. Shareholder pressure pushed the GSEs into competition with PLS for market share, and the GSEs loosened their guarantee business underwriting standards in order to compete. In contrast, the wholly public FHA/Ginnie Mae maintained their underwriting standards and instead ceded market share.[36]
Fannie Mae - Wikipedia, the free encyclopedia
fannie and freddie DID NOT cause or begin this mess.....no matter what you all say, they DID NOT.
They did get pulled in to it LATER ON....
The entities that were truly protected were the mega global banks.
Smaller regional banks, like small businesses, were the victims of this Cronyism.
One of the biggest mistakes Bush made was hiring that slimeball Hank Paulson.
I think that the smaller banks were victims as well.
And to add, they probably had more fear of groups like ACORN who threatened lawsuits if they did not implement the liberal loaning policies concocted in the 90s.
The entities that were truly protected were the mega global banks.
Smaller regional banks, like small businesses, were the victims of this Cronyism.
One of the biggest mistakes Bush made was hiring that slimeball Hank Paulson.
I think that the smaller banks were victims as well.
And to add, they probably had more fear of groups like ACORN who threatened lawsuits if they did not implement the liberal loaning policies concocted in the 90s.
No doubt liberal loaning policies contributed. But how many home buyers at what price home were on the bubble and REQUESTED, not forced, loans?
And what is the average loan for that income group?
And what % of the total loan portfolio is that group in?
Try no more than 15% of total dollars loaned.
Were you forced to borrow $$?
Is your loan a "liberal loan"?
Are appraisers, mortgage brokers, agents and the lenders AT FAULT IN ANY OF THIS?
One out of four, underwater?
That would mean a LOT of USMB'ers...
...so, which of you are capable of manning up and telling us about it?
I think that the smaller banks were victims as well.
And to add, they probably had more fear of groups like ACORN who threatened lawsuits if they did not implement the liberal loaning policies concocted in the 90s.
No doubt liberal loaning policies contributed. But how many home buyers at what price home were on the bubble and REQUESTED, not forced, loans?
And what is the average loan for that income group?
And what % of the total loan portfolio is that group in?
Try no more than 15% of total dollars loaned.
Were you forced to borrow $$?
Is your loan a "liberal loan"?
Are appraisers, mortgage brokers, agents and the lenders AT FAULT IN ANY OF THIS?
I never suggested that ignorant people didn't take the opportunity to own a home they couldn't afford.
Obama should not have propped them up. It was a temporary fix, waste of money, and simply postponed people having their homes foreclosed down the road.
But to the last part, yes, I think that some lenders went all in for whatever reason.
Banks should not have been strong-armed by the policies developed under Clinton. Which banks jumped in bed with the likes of those libs that pushed this originally, as time went on, remains to be seen.
