Bush requested oversight multiple times prior to collapse

[AllieBaba]

And Congress' ultimate approval.

As late as July, when he finally got Congress to approve oversight, Congress members were still griping:

"The financial condition of the two companies is being followed closely by members of Congress, some of whom have expressed concern about approving a plan without a clearer understanding of the value of the possible losses from mortgage-related securities owned or guaranteed by them."
Regulators check Fannie, Freddie books: report | Reuters

Executive Office of the President Office of Management and Budget press release, May 29, 2002:
OMB URGES GREATER PUBLIC DISCLOSURE FOR FANNIE MAE AND FREDDIE MAC
"Requests OFHEO to consider rulemaking"
The Office of Management and Budget released a statement urging oversight, referring to a March 7th 2002 10-point plan to IMPROVE CORPORATE RESPONSIBILITY AND HELP PROTECT AMERICA'S SHAREHOLDERS. The "OIRA's request came in teh form of a "prompt" letter, a tool introduced by teh Bush administration. While a prompt letter does not necessarily force agency action, it alerts agencies of issues OMB considers a priority."
OMB news released, 05/29/2002
2002 News Releases

There's more but I've got to post this before I lose it.

 

[AllieBaba]

On February 7, 2005, Pres. Bush delivered his FY 2006 budget request for the federal government to Congress. That budget proposal included increased oversight of Fannie Mae and Freddie Mac:

"A new Office of Housing Finance Supervision in the Treasury Department that would regulate Fannie Mae, Freddie Mac, and the 12 Federal Home Loan Banks."
Regulatory and Industry Relations Realtors FY 2006 Bush Budget Summary and Highlights for Realtors, a Report from the Regulatory and Industry Relations Division, Feb. 15, 2005.
http://www.realtor.org/wps/wcm/connect/ec051380493691f5b4b8f570b8f35b47/budgetover06.pdf?

 

[Truthmatters]

http://democrats.senate.gov/journal/entry.cfm?id=299679&


June 25, 2008

Industry Experts, Housing Advocates and Economists Support Bipartisan Housing Bill

The bipartisan housing bill on the floor of the Senate has garnered support from industry experts, housing advocates and economists, who all believe this legislation is a critical step towards stabilizing the housing market and get our economy back on track. The bill reforms regulation of the Government Sponsored Enterprises, modernizes the FHA, helps families avoid foreclosure and establishes an affordable housing trust fund to help low-income families. Senate Republicans should join with Democrats to pass this bipartisan legislation without delay.

Industry experts support bipartisan Senate housing bill:

National Association of Realtors Said Housing Bill Is Critical to Calming Mortgage Markets, Strengthening Housing Markets and Stabilizing Our Economy. “On behalf of the 1.2 million members of the National Association of REALTORS, I urge immediate consideration of the Housing and Economic Recovery Act of 2008. This important bill is critical to calming mortgage markets, strengthening housing markets, and stabilizing our economy. The National Association of REALTORS has consistently supported the goals of this legislation – FHA reform, GSE reform, FHA foreclosure prevention, a tax credit for homebuyers, additional mortgage revenue bonds modernization of the LIHTC program, and development of a National Affordable Housing Trust Fund. As more and more American families face foreclosure, and mortgage markets struggle, this package of proposals is essential to putting our country back on the right course.” [National Association of Realtors Letter, 6/19/08]

Mortgage Bankers Association Urged Swift Passage of Legislation to Strengthen Regulatory Oversight of Government Sponsored Enterprises. “On behalf of the member companies of the Mortgage Bankers Association, I encourage the Senate to pass legislation to strengthen the regulatory oversight of the housing Government Sponsored Enterprises (GSEs). We strongly support moving this legislation through the Senate to reconcile with the House and enact this year. Passage of GSE regulatory reform legislation is a vital step in restoring confidence in the capital markets.” [Mortgage Bankers Association, 6/17/08]

Financial Services Roundtable’s Housing Policy Council Called GSE Regulatory Reform, FHA Modernization and Hope for Homeowners “Important Components” in the Effort to Stabilize Housing Market. We are writing to urge prompt Senate consideration of the Housing and Economic Recovery Act of 2008. This legislation contains GSE regulatory reform; FHA modernization and an FHA refinance program which are important components in the effort to stabilize and strengthen the housing finance system for American homeowners… The bill contains the essential components needed to strengthen the regulation of the housing-GSEs. The creation of a new, independent regulator with clear oversight authority will help stabilize the housing finance system and begin to restore confidence and liquidity to the market which will benefit consumers and the overall economy. In addition, the bill contains FHA modernization reforms and the “Hope for Homeowners” FHA refinance program for at-risk homeowners. FHA modernization is essential for that agency to play its proper role in assisting low and moderate income homeowners and the refinance program would provide an additional option to help at-risk homeowners.” [Financial Services Roundtable’s Housing Policy Council Letter, 6/18/08]

Securities Industry and Financial Markets Association Said Bipartisan Housing Bill Responds to Needs of Struggling Homeowners and Will Stabilize the Mortgage Market. “The Securities Industry and Financial Markets Association (SIFMA) supports further and timely consideration of the American Housing and Economic Recovery Act of 2008 currently being debated by the Senate. We believe this legislation responds to the critical and urgent housing needs faced by troubled homeowners and should aid in the liquidity and stability of the mortgage market. SIFMA particularly supports the tax-exempt bond provisions in the legislation. The legislation would increase the annual volume cap on tax-exempt housing by bonds by $11 billion in 2008. This additional bond capacity would enhance the ability of state and local governments to respond to urgent housing needs.”[Securities Industry and Financial Markets Association Letter, 6/23/08]

Housing advocates and community economic development organizations support bipartisan housing bill:

Sheila Crowley, President and CEO of the National Low Income Housing Coalition, Praised Bipartisan Housing Bill for Including Housing Trust Fund Compromise. “On behalf of the 5,700 endorsers of the National Housing Trust Fund campaign, I want to express our deepest appreciation for your leadership on what we think is the most important housing bill of our time. You, along with Senator Jack Reed, should be commended for negotiating a compromise for the overall bill that garnered strong bipartisan support in the committee. The National Housing Trust Fund Campaign supports the Housing Trust Fund established by this bipartisan bill, the Federal Housing Finance Regulatory Reform Act of 2008. This provision will allow the housing trust fund to continue to grow over time so that more housing affordable to extremely and very low income people can be produced and preserved. These provisions will help ensure that the housing trust fund focuses on the very lowest income households, who have the greatest housing affordability problems.” [Senate Banking Committee Statement, 6/20/08]

Michael Rubinger, President and CEO of the Local Initiatives Support Corporation Said Struggling Families and the Nation’s Economy Urgently Need Housing Bill. “This is the most important housing legislation in this decade. Struggling families and communities and the nation's economy urgently need this bill to help prevent mortgage foreclosures, stabilize neighborhoods undermined by foreclosures and vacant properties, and provide new capital essential to home ownership, affordable rental housing, and community revitalization.” [Senate Banking Committee Statement, 6/20/08]

Mark Pinsky, President and CEO of the Opportunity Finance Network, Said Housing Bill Will Transform Mortgage Industry, Grow Financial Markets and Expand Home Ownership Market While Help Low-Income Families. “Chairman Dodd’s bipartisan leadership has produced legislation that can transform America’s mortgage industry and plant the seeds of growth in financial markets. The bill’s multifaceted solutions for housing for our nation’s neediest and the regulatory reform of the GSEs is innovative and smart; these solutions will help bring stability and expansion to the home ownership market. The Capital Magnet Fund is an unprecedented high-value investment in long-term growth and housing expansion, while the National Housing Trust Fund is a sound strategy for ensuring quality, affordable housing for extremely low-income people. This country, especially those in low-income urban, rural, and reservation-based markets owe a word of thanks to the Chairman.” [Senate Banking Committee Statement, 6/20/08]

Nancy O. Andrews, President, Low Income Investment Fund, Called Housing Bill One of the Most Important Pieces for Low-Income People in 20 Years. “We applaud Chairman Dodd's leadership in creating bipartisan support for the National Housing Trust Fund and the Capital Magnet Fund. This is one of the most important pieces of legislation for low-income people and communities in the past 20 years. The Capital Magnet Fund will leverage billions of dollars in additional private investment for low-income communities across the United States. Chairman Dodd is a real champion on behalf of America's communities.” [Senate Banking Committee Statement, 6/20/08]

Elyse Cherry, CEO, Boston Community Capital, Said Housing Bill Will Improve Efficiency and Service of GSEs. “A strong, efficient GSE system is critical to ensuring smooth flows of capital to communities and people underserved by mainstream markets. The Federal Housing Finance Regulatory Reform Act of 2008 moves GSEs forward to a new level of efficiency and service by strengthening the partnerships that will help them lead the way in providing financing for affordable housing and low-income communities. We commend Chairman Dodd for his unwavering support and for this legislation and look forward to its passage by the Senate.” [Senate Banking Committee Statement, 6/20/08]

Fran Grossman, Senior Vice President of Shore Bank Corporation, Said Housing Bill Provide Access and Resources to Help Families Hold Onto the American Dream. “The housing crisis and mortgage meltdown pose the greatest threats to the stability and well-being of our communities since redlining more than 40 years ago. With millions of hard working Americans torn between looking for work and putting gas in the tank or paying the mortgage, we must enact legislation that will provide access to the resources that will help families to hold onto the American Dream and get the economy moving again. Chairman Dodd’s Federal Housing Finance Regulatory Reform Act of 2008 does just that.” [Senate Banking Committee Statement, 6/20/08]

Allen Fishbein, Director of Housing and Credit Policy at the Consumer Federation of America, Praised Housing Bill for Helping to Avert Foreclosures and Aiding Low-Income Families. “With foreclosures on the rise a stepped-up federal lifeline is desperately needed if many hard pressed families are to save their homes. Consumer Federation of America is pleased that the “Housing and Economic Recovery Act” includes new tools aimed at averting foreclosures, such as by making greater use of the FHA program to refinance those facing foreclosure into long-term sustainable mortgages. Provisions for enhancing the affordable housing mission of the Government Sponsored Housing Enterprises should also help to encourage the reliable flow of responsible home loan credit to underserved markets. We appreciate the diligence and commitment shown by Chairman Dodd and Ranking Member Shelby in forging bi-partisan consensus in support of this legislation and for the need for congressional action on the foreclosure crisis.” [Senate Banking Committee Statement, 6/20/08]

Economists and industry experts support the bipartisan Senate housing bill:

Alan S. Blinder, Former Vice Chairman, Board of Governors of the Federal Reserve System Called HOPE for Homeowners Most Important Piece of Economic Legislation Before Congress Today. “I think the HOPE for Homeowners bill is the most important piece of economic legislation before the Congress today. The financial markets will not cure themselves until the housing crisis wanes, and the housing crisis will not be resolved until we get a handle on the foreclosure problem. This bill is an excellent first step. We need it—now.” [Senate Banking Committee Statement, 6/20/08]

Alex Pollack, Resident Fellow at the American Enterprise Institute for Public Policy Research and Former President and CEO of the Federal Home Loan Bank of Chicago Said He Strongly Supported HOPE for Homeowners and GSE Reform “I do in particular support the troubled loan refinancing program, HOPE for Homeowners, combined with GSE regulatory reform. HOPE for Homeowners uses the historically successful principles of the Home Owners’ Loan Corporation to create a temporary program to put borrowers on a sustainable basis while reliquifying mortgage investors with realization of loss for the investors. This is an appropriate and targeted approach to the downward spiral caused by the deflation of the great housing and mortgage bubble of the 21st century. The creation of a combined housing GSE regulator is a good idea, long overdue. The use of fees from the GSEs to help fund the refinancing program so that the overall package supports itself is a very good idea.” [Senate Banking Committee Statement, 6/20/08]

Robert J. Shiller, the Arthur M. Okun Professor of Economics and Professor of Finance at Yale University and Chief Economist for MacroMarkets LLC, Said Housing Bill Will Help Homeowners Having Trouble Making Their Payments. “I support the Hope for Homeowners Act which will help homeowners who are having trouble making their mortgage payments.” [Senate Banking Committee Statement, 6/20/08]

 

[William Joyce]

Question:

What "oversight," exactly, would have stopped the mortgage meltdown?

I mean, it basically comes down to two choices: make the loan or don't.

You make the loan if you think the borrower can pay it back. If you don't, you don't.

That formula is a simple one banks have dealt with for centuries.

And nothing about the economy has changed in the past ten years vis a vis employment and income levels that would have stopped that.

What's the difference?

Well, for one thing, we have FIVE MILLION mortgages "held" by illegal aliens. Problem, ya think?

And millions more that banks were FORCED to make to minorities, who take a very casual approach to paying back loans, trust me.

Call it 'the diversity recession'!

 

[rayboyusmc]

Well, for one thing, we have FIVE MILLION mortgages "held" by illegal aliens. Problem, ya think? (HUD said this is erronious data.)

Only if they are the ones defaulting. If they are paying, it isn't part of the problem. Any data?

And millions more that banks were FORCED to make to minorities, who take a very casual approach to paying back loans, trust me. (I don't)

PLease post the data that shows how many of these "minorities" have defaulted or piss off. The only ones I know who are losing their homes are whiteys just like me.

Call it 'the diversity recession'!

Call it more bullshit distractions.

 

[rayboyusmc]

But note that about 56 percent of subprime mortgages went to non-Hispanic white people, according to the study, which was made in 2006 at the peak of their usage. And about 40 percent went to borrowers considered affluent -- that is, who have annual incomes at least 120 percent of their local median income.

Data are not readily available, but it's likely that as few as one in four subprime loans was made by a lending institution that falls under the purview of the CRA. So, are default rates in CRA-related pools of mortgages higher than those in unrelated pools? Nobody has come forward with data showing that they are.

In other words, there is no basis for the libel against minority borrowers.

But it is a nice attack target for the right.

Minorities not to blame for meltdown: Opinion | adn.com

 

[William Joyce]

Minorities not to blame for meltdown

MARY SANCHEZ
COMMENT



"Comment" by "Mary Sanchez"

Now THERE'S some trustworthy info!

 

[Charles_Main]

The problem is the standards were changed to allow more loans to low income people, then the banks used those new changed less restrictive standards to not only make the risky loans to low income people the Dems wanted, but also to make risky loans to real estate speculators and developers as well.

 

[avid]

Obama wrote a letter about sub prime mortgages,
McCain wrote a letter about fannie and freddie,
Bush wrote a letter about needing more over sight.
Two senators and one president writing letters.
Now that's what I call leadership.

 

[Truthmatters]

What I cant figure out is why the party who had complete control of the country for years didnt just do something instead of writing letters?

 

[dilloduck]

What I cant figure out is why the party who had complete control of the country for years didnt just do something instead of writing letters?

TM--you can't figure out a damn thing with your partisan hatred. Don't even bother trying .

 

[WillowTree]

Question:

What "oversight," exactly, would have stopped the mortgage meltdown?

I mean, it basically comes down to two choices: make the loan or don't.

You make the loan if you think the borrower can pay it back. If you don't, you don't. Well that would make sense wouldn't it? But then you had lawyers like brock Obamalama in there threatenig and bringing lawsuits of discrimination for not loaning to minorites. A shell game.

That formula is a simple one banks have dealt with for centuries.

And nothing about the economy has changed in the past ten years vis a vis employment and income levels that would have stopped that.

What's the difference?

Well, for one thing, we have FIVE MILLION mortgages "held" by illegal aliens. Problem, ya think? Big problemAnd millions more that banks were FORCED to make to minorities, who take a very casual approach to paying back loans, trust me.

Call it 'the diversity recession'!

I think they called it a scam perpetrated on the American taxpayer by ACORN Chris Dodd Obamalama, and Bawney Fwank.

 

[WillowTree]

Obama wrote a letter about sub prime mortgages,
McCain wrote a letter about fannie and freddie,
Bush wrote a letter about needing more over sight.
Two senators and one president writing letters.
Now that's what I call leadership.

Not quite accurate, McCain tried to get legislation onto the floor it was blocked. Obama says he wrote a letter but he can not or will not produce it. Talk is cheap. Oh btw, he has a bracelt too!