Freddie & Fannie: Central Planning at its worst

[Oddball]

GSEs Fannie & Freddie were the problem. How Did Paul Krugman Get It So Wrong?

DEAD ON! Toro & Peepers need to read this........

Thanks for finding this article, I have debated this very point way too many times........

http://www.federalreserve.gov/boarddocs/surveys/craloansurvey/summary2000.pdf

Results for Community Development Lending

Survey respondents report that community development lending offers a variety of
benefits to banking institutions. Virtually all survey respondents report that they benefit from
their community development lending because it promotes community growth and stability and
responds to the credit needs of the local community. Virtually none of the respondents report that
they undertake community development lending solely to obtain a satisfactory or outstanding
CRA rating.

On a per institution basis, nearly all banking institutions that provided responses,
regardless of asset-size category, report that their community development lending is either
profitable or marginally profitable (chart 7a).


Chart 7a: Profitability of Community
Development Lending
(percent of institutions)
Profitable
54%
Marginally
Profitable
39%
Break Even
4%
Marginally
Unprofitable
2%
Unprofitable
1%

The Fed is a partner to the crime, Scooter.

Of course they're going to run interference for their willing political accomplices.

 

[edthecynic]

I recall reading article after article in WSJ, raising red flags over Freddie and Fanny between 2001-2002.

When Bush was President.

Yes........


BOOOOOOOOOOOOOOOOOOOOoooooooooOOOOOSH

Fannie and Freddie may have been on the edge in 2001 and 2002, but it was Bush's dec 2003 American Dream Downpayment Initiative (ADDI) that changed the rules and pushed the housing market over the cliff.

The American Dream Downpayment Initiative allowed no downpayment loans to people with bad credit for more than the house was worth and who were at least 20% below the standard for the neighborhood who would never be able to make their payments. Bush did it to try to strip minority votes away from the Dems. It was the centerpiece of his 2004 campaign.

USATODAY.com - Bush seeks to increase minority homeownership

Bush seeks to increase minority homeownership
By Thomas A. Fogarty, USA TODAY

In a bid to boost minority homeownership, President Bush will ask Congress for authority to eliminate the down-payment requirement for Federal Housing Administration loans.

In announcing the plan Monday at a home builders show in Las Vegas, Federal Housing Commissioner John Weicher called the proposal the "most significant FHA initiative in more than a decade." It would lead to 150,000 first-time owners annually, he said.

Nothing-down options are available on the private mortgage market, but, in general, they require the borrower to have pristine credit. Bush's proposed change would extend the nothing-down option to borrowers with blemished credit.

The FHA isn't a direct lender, but guarantees loan payments for mortgages on moderately priced owner-occupied property. The FHA guarantee now permits private lenders to finance as much as 97% of the purchase price of a home for millions of low- and middle-income borrowers.

In the proposal soon to be delivered to Congress, Bush would allow the FHA to guarantee loans for the full purchase price of the home, plus down-payment costs. As a practical matter, the FHA would guarantee mortgages as high as 103% of the value of the underlying property.

Absolutely wrong, Clinton created FHA DPA in '96, ADDI funds a very small demographic, almost minute, the income limitations where calculated with some common sense, in Harris County our Commissioner Court presides over the approval, as recently as '09 they raised the Purchase Price Limit because the Federal Funds had not been used, also the borrower has to fit into traditional FHA DITI Ratio's.........

I will refrain from the insults, but you bought the ocean front property in AZ and don't even know it......

Everything changed for the worse after ADDI was passed in Dec 2003. 2004 marked the beginning of the end of the housing market. Even LimpTard admits it.

July 7,2010
BREAK TRANSCRIPT

RUSH:* To illustrate my point even further: "Subprime mortgages accounted for 9 percent of all mortgage originations from 1996 through 2004."* But that 9% became 21% from 2004 to 2006, 21% of all mortgages were subprime.* Twenty-one percent of all mortgages were essentially money given away to people because they were loans made to people that everybody knew going in would never pay them back.* And that 21% of the mortgage market being subprime equaled about $600,000 billion in 2006, which was at the time one-fifth of the US home loan market.*

 

[GWV5903]

Fannie and Freddie may have been on the edge in 2001 and 2002, but it was Bush's dec 2003 American Dream Downpayment Initiative (ADDI) that changed the rules and pushed the housing market over the cliff.

The American Dream Downpayment Initiative allowed no downpayment loans to people with bad credit for more than the house was worth and who were at least 20% below the standard for the neighborhood who would never be able to make their payments. Bush did it to try to strip minority votes away from the Dems. It was the centerpiece of his 2004 campaign.

Absolutely wrong, Clinton created FHA DPA in '96, ADDI funds a very small demographic, almost minute, the income limitations where calculated with some common sense, in Harris County our Commissioner Court presides over the approval, as recently as '09 they raised the Purchase Price Limit because the Federal Funds had not been used, also the borrower has to fit into traditional FHA DITI Ratio's.........

I will refrain from the insults, but you bought the ocean front property in AZ and don't even know it......

Everything changed for the worse after ADDI was passed in Dec 2003. 2004 marked the beginning of the end of the housing market. Even LimpTard admits it.

July 7,2010
BREAK TRANSCRIPT

RUSH:* To illustrate my point even further: "Subprime mortgages accounted for 9 percent of all mortgage originations from 1996 through 2004."* But that 9% became 21% from 2004 to 2006, 21% of all mortgages were subprime.* Twenty-one percent of all mortgages were essentially money given away to people because they were loans made to people that everybody knew going in would never pay them back.* And that 21% of the mortgage market being subprime equaled about $600,000 billion in 2006, which was at the time one-fifth of the US home loan market.*

ADDI Funds had nothing to do with Sub Prime lending, not even close......

You can try as hard as you want, but Carter & Clinton's finger prints are all over this one.....

 

[KissMy]

--October 1992-- Congress, enacting the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, It "established HUD-imposed housing goals for financing of affordable housing and housing in central cities and other rural and underserved areas." Washington Post In a brief debate unfolded on the floor of the House of Representatives over a bill to create a new regulator for Fannie Mae and Freddie Mac. On one side stood Jim Leach, an Iowa Republican concerned that Congress was "hamstringing" this new OFHEO regulator at the behest of the companies. He warned that the two companies were changing "from being agencies of the public at large to money machines for the stockholding few." On the other side stood Barney Frank, a Massachusetts Democrat who said the companies served a public purpose. They were in the business of lowering the price of mortgage loans.

--September 1993-- The Chicago Sun-Times reports an initiative led by ACORN's Talbott with five area lenders "participating in a $55 million national pilot program with affordable-housing group ACORN to make mortgages for low- and moderate-income people with troubled credit histories." Kurtz notes that the initiative included two of her former targets, Bell Federal Savings and Avondale Federal Savings, who had apparently capitulated under pressure.

--July 1994-- Represented by Obama and others, plaintiffs filed a class-action lawsuit alleging Citibank had "intentionally discriminated against the plaintiffs on the basis of race with respect to a credit transaction" and calling its action "racial discrimination and discriminatory redlining practices." Buycks-Roberson v. Citibank

--November 1994-- President Clinton addressed the National Association of Realtors Conference Anaheim, California "I think we all agree that more Americans should own their own homes, for reasons that are economic and tangible and reasons that are emotional and intangible but go to the heart of what it means to harbor, to nourish, to expand the American dream"..."I am determined to see that you have the opportunity and together we can make that opportunity for the young families of our country. I am committed to a new and unprecedented partnership between industry leaders and community leaders and government to recommit our nation to the idea of homeownership and to create more homeowners than ever before." "The Clinton administration announced the bold new homeownership strategy, which included monumental loosening of credit standards and imposition of subprime lending quotas."

--May 1995-- The FDIC's Board of Directors approved a final rule implementing the Community Reinvestment Act (CRA). The Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Office of Thrift Supervision have approved parallel regulations for the institutions they supervise. The joint final rule largely retains the principles and structure of the proposals issued in December 1993 and October 1994. The new CRA regulation replaces the 12 assessment factors contained in the old rule with a more performance-based evaluation process to assess whether financial institutions are meeting the credit needs of their communities, including low- and moderate-income neighborhoods. The new rule establishes different tests for large and small institutions, as well as for retail and wholesale or limited purpose banks.

--June 1995-- The Clinton administration, allied with Rep. Frank, Sen. Ted Kennedy, D-Mass., and Rep. Maxine Waters, D-Calif., directed HUD Secretary Andrew Cuomo to inject GSEs into the subprime mortgage market. "ACORN had come to Congress not only to protect the CRA from GOP reforms but also to expand the reach of quota-based lending to Fannie, Freddie and beyond." What resulted was the broadening of the "acceptability of risky subprime loans throughout the financial system, thus precipitating our current crisis."

The administration announced the bold new homeownership strategy, which included monumental loosening of credit standards and imposition of "SUBPRIME LENDING QUOTAS." HUD reported that President Clinton had committed "to increasing the homeownership rate to 67.5% by the year 2000." The plan was "to reduce the financial, information and systemic barriers to homeownership" which was "amplified by local partnerships at work in over 100 cities."

"Urged on by ACORN, congressional Democrats and the Clinton administration helped push tolerance for high-risk loans through every sector of the banking system — far beyond the sort of banks originally subject to the CRA. So it was the efforts of ACORN and its Democratic allies that first spread the subprime virus from the CRA to Fannie and Freddie and thence to the entire financial system. Soon, Democratic politicians and regulators actually began to take pride in "LOWERED CREDIT STANDARDS" as a sign of "fairness." Attorney General Janet Reno, who had already won a number of bank lending discrimination settlements, sternly announces, "We will tackle lending discrimination wherever it appears." With the new policy in full force, "No loan is exempt; no bank is immune. For those who thumb their nose at us, I promise vigorous enforcement."

--1997-- HUD Secretary Cuomo said, "GSE presence in the subprime market could be of significant benefit to lower-income families, minorities, and families living in underserved areas. "

--April 1998-- HUD announced a $2.1 billion settlement with AccuBanc Mortgage Corp. for alleged discrimination against minority loan applicants. [ame="http://www.youtube.com/watch?v=ivmL-lXNy64"]Affirmative Action Lending[/ame] The funds would provide poor families with down payments and low interest mortgages. "Discrimination isn't always that obvious," said Secretary Cuomo in announcing the AccuBanc deal. "Sometimes more subtle but in many ways more insidious, an institutionalized discrimination that's hidden behind a smiling face." Before the camera, Cuomo admitted the mandate amounted to "affirmative action" lending that would result in a "higher default rate."

The institution would "take a greater risk on these mortgages, yes; to give families mortgages who they would not have given otherwise, yes; they would not have qualified but for this affirmative action on the part of the bank, yes. It is by income, and is it also by minorities? Yes. "With the $2.1 billion, lending that amount in mortgages which will be a higher risk, and I'm sure there will be a higher default rate on those mortgages than on the rest of the portfolio." The CRA allowed ACORN "organizations to collect a fee from the banks for their services in marketing the loans. The Senate Banking Committee had estimated that, as a result of CRA, $9.5 billion had gone to pay for services and salaries of the organizers."

--May 1999-- The Los Angeles Times reports that African-American homeownership is increasing three times as fast as that of whites, with Latino homeowners growing five times as fast, attributing the growth to breathing "the first real life into enforcement of the Community Reinvestment Act." Mandateing that Fannie Mae and Freddie Mac buy mortgages with deviant down payments and debt-to-income ratios, which allowed lenders to approve mortgages for lower-income families that would have been denied otherwise. By now, all pretense had disappeared and lending practices were based upon concerns of discrimination in the banking system regardless of the consequences. Clinton threatened to veto a bill passed by the Senate that had "shortsightedly voted to retrench" CRA, as the Times put it. Under pressure, Fannie Mae was resisting increased targeting, arguing that the result would be more loan defaults. Barry Zigas, head of Fannie Mae's low-income efforts, argued, "There is obviously a limit beyond which (we) can't push (the banks) to produce," the Times reported.

--Fall 1999-- Treasury Secretary Lawrence Summers issued a warning: "Debates about systemic risk should also now include government-sponsored enterprises, which are large and growing rapidly."

--September 1999-- New York Times "With pressure from the Clinton administration, Fannie Mae eased credit requirements on loans it would purchase from lenders, making it easier for banks to lend to borrowers unqualified for conventional loans. Fannie Mae's Raines explained that "there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market."

With this action, Fannie Mae put itself at substantial risk in the event of an economic downturn. "From the perspective of many people, including me, this is another thrift industry growing up around us," warned Peter Wallison, a fellow in financial policy studies at the American Enterprise Institute (AEI). "If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry." The danger was known.

A study by Freddie Mac, confirming earlier Federal Reserve and FDIC studies, contradicts race discrimination arguments for CRA. The study found that African-Americans with annual incomes of $65,000-$75,000 have on average worse credit records than whites making under $25,000. This showed that the difficulty in qualifying was not because of race but bad credit records. Accordingly, the Federal Reserve Bank of Dallas entitled a paper "Red Lining or Red Herring?"

"City Journal warned that the Clinton administration had turned CRA into 'a vast extortion scheme against the nation's banks,'committing $1 trillion for mortgages and development projects, most of it funneled through the community organizers."

--November 1999-- President Bill Clinton signed into law S.900 Financial Services Modernization Act of 1999 This bill had CRA loan mandates & allowed banks to sell the mandated bad loans to GSEs Fannie, Freddie, pension funds, foreigners & anyone else. This disolved Glass Steagall & made it legal for banks to create bad risky loans with the government backing it allowing it to get a AAA rating. This gave banks a license to steal!!!

--December 2000-- President Bill Clinton signed into law H.R. 4577: Consolidated Appropriations Act, 2001. Consolidated in this bill was Commodity Futures Modernization Act of 2000. This law made most over-the-counter derivatives (“OTC derivatives&#8221 transactions between “sophisticated parties” un-regulated as “futures” under the Commodity Exchange Act (CEA) or as “securities” under the federal securities laws. Instead, banks and securities firms would continue to have their dealings in OTC derivatives supervised by their federal regulators under general “safety and soundness” standards. “Functional regulation”. This was to create an international derivatives market for comodities securities. Clinton & Gore were trying to built the framework for Carbon Cap & Trade Energy Trading Market Scheme with this law. This gave birth to the Enron Loophole.
[ame="http://www.youtube.com/watch?v=vFK-UTGH1Zw"]Gore and the Enron Loophole.[/ame]

--April 2001-- The Bush Administrations 2002 Budget Assesment (page 142) "Uncertainties about the Federal Government’s liability have increased in some areas. Consolidation has increased bank size, and deregulation has allowed banks to engage in many risky activities. Thus, the loss to the deposit insurance funds can turn out to be unusually large in some bad years. The potential loss needs to be limited by large insurance reserves and effective regulation. The large size of some GSEs is also a potential problem. Financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity."

"In general, direct subsidies are more efficient than credit programs for the purpose of fulfilling social objectives such as helping low-income people, as opposed to economic objectives such as improving credit allocation. Direct subsidies are less likely to interfere with the efficient allocation of resources."

Bush wanted to cut back on the subprime lending because he knew giving people with BAD CREDIT a loan was much more dangerous than giving someone with good credit a down payment subsidy. This is a MAJOR difference! Even someone making millions like Michael Jackson was hopelessly in debt because they can't be financially responsible enough to pay their debts & live within their means. A study by Freddie Mac, confirming earlier Federal Reserve and FDIC studies, contradicts race discrimination arguments for CRA. The study found that African-Americans with annual incomes of $65,000-$75,000 have on average worse credit records than whites making under $25,000. This showed that the difficulty in qualifying was not because of race but bad credit records. Accordingly, the Federal Reserve Bank of Dallas entitled a paper "Red Lining or Red Herring?"

--May 2002-- President Bush calls for the disclosure and corporate governance principles contained in his 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac. (OMB Prompt Letter to OFHEO, 5/29/02)

--September 2003-- Treasury Secretary John Snow testifies before the House Financial Services Committee to recommend that Congress enact "legislation to create a new Federal agency to regulate and supervise the financial activities of our housing-related government sponsored enterprises" and set prudent and appropriate minimum capital adequacy requirements.

The New York Times published on Sept 10th 2003 "The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago. Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry. The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios."

[ame="http://www.youtube.com/watch?v=cMnSp4qEXNM"]Bush Tried to Stop This[/ame]

--November 2003-- Council of the Economic Advisers (CEA) Chairman Greg Mankiw explains that any "legislation to reform GSE regulation should empower the new regulator with sufficient strength and credibility to reduce systemic risk." To reduce the potential for systemic instability, the regulator would have "broad authority to set both risk-based and minimum capital standards" and "receivership powers necessary to wind down the affairs of a troubled GSE." (N. Gregory Mankiw, Remarks At The Conference Of State Bank Supervisors State Banking Summit And Leadership, 11/6/03)

--February 2004-- The President's FY05 Budget again highlights the risk posed by the explosive growth of the GSEs and their low levels of required capital, and called for creation of a new, world-class regulator: "The Administration has determined that the safety and soundness regulators of the housing GSEs lack sufficient power and stature to meet their responsibilities, and therefore…should be replaced with a new strengthened regulator." (2005 Budget Analytic Perspectives, pg. 83)

--February 2004-- CEA Chairman Mankiw cautions Congress to "not take [the financial market's] strength for granted." Again, the call from the Administration was to reduce this risk by "ensuring that the housing GSEs are overseen by an effective regulator." Financial Times

--June 2004-- Deputy Secretary of Treasury Samuel Bodman spotlights the risk posed by the GSEs and called for reform, saying "We do not have a world-class system of supervision of the housing government sponsored enterprises (GSEs), even though the importance of the housing financial system that the GSEs serve demands the best in supervision to ensure the long-term vitality of that system. Therefore, the Administration has called for a new, first class, regulatory supervisor for the three housing GSEs: Fannie Mae, Freddie Mac, and the Federal Home Loan Banking System." (Samuel Bodman, House Financial Services Subcommittee on Oversight and Investigations Testimony, 6/16/04)

--Late 2004-- Democrats in congress blocked action to regulate the GSEs Fannie & Freddie.
[ame="http://www.youtube.com/watch?v=_MGT_cSi7Rs&feature=related"]Democrats blocked regulation of Fannie & Freddie.[/ame]

These same Democrats & Obama were paid off by by GSEs Fannie & Freddie!!!

--November 2004-- Here is Barney Franks letter to cut funding for OFHEO because they blew the whistle on Subprime criminal activity at Fannie Mae.

--December 2004-- ACORN used congress to force Trillions in CRA loans & payoffs. They recently hit Bank of America for over $800 Billion. (see page 25) of this congress hearing. That is some serious money. Don't tell me ACORN is not pouring on some serious pressure using the CRA compliance criteria.

--2005-- Fannie Mae CEO Frank Raines affirms partnership with Barack Obama & The Congressional Black Caucus" [ame="http://www.youtube.com/watch?v=usvG-s_Ssb0&feature=related"]Frank Raines[/ame]

--April 2005-- Treasury Secretary John Snow repeats his call for GSE reform, saying "Events that have transpired since I testified before this Committee in 2003 reinforce concerns over the systemic risks posed by the GSEs and further highlight the need for real GSE reform to ensure that our housing finance system remains a strong and vibrant source of funding for expanding homeownership opportunities in America… Half-measures will only exacerbate the risks to our financial system." (Secretary John W. Snow, "Testimony Before The U.S. House Financial Services Committee," 4/13/05)

--August 2007-- President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and Freddie Mac, saying "first things first when it comes to those two institutions. Congress needs to get them reformed, get them streamlined, get them focused, and then I will consider other options." (President George W. Bush, Press Conference, The White House, 8/9/07)

--September 2007-- Obama: "Subprime lending started off as a good idea - helping Americans buy homes who couldn’t previously afford to. Financial institutions created new financial instruments that could securitize these loans, slice them into finer and finer risk categories and spread them out among investors around the country and around the world. In theory, this should have allowed mortgage lending to be less risky and more diversified." These same financial institutions were Top Contributors to Barack Obama's Campaign

--December 2007-- President Bush again warns Congress of the need to pass legislation reforming GSEs, saying "These institutions provide liquidity in the mortgage market that benefits millions of homeowners, and it is vital they operate safely and operate soundly. So I've called on Congress to pass legislation that strengthens independent regulation of the GSEs – and ensures they focus on their important housing mission. The GSE reform bill passed by the House earlier this year is a good start. But the Senate has not acted. And the United States Senate needs to pass this legislation soon." (President George W. Bush, Discusses Housing, The White House, 12/6/07)

--February 2008-- Assistant Secretary David Nason reiterates the urgency of reforms, says "A new regulatory structure for the housing GSEs is essential if these entities are to continue to perform their public mission successfully." (David Nason, Testimony On Reforming GSE Regulation, Senate Committee On Banking, Housing And Urban Affairs, 2/7/08)

--March 2008-- President Bush calls on Congress to take action and "move forward with reforms on Fannie Mae and Freddie Mac. They need to continue to modernize the FHA, as well as allow State housing agencies to issue tax-free bonds to homeowners to refinance their mortgages." (President George W. Bush, Remarks To The Economic Club Of New York, New York, NY, 3/14/08)

--April 2008-- President Bush urges Congress to pass the much needed legislation and "modernize Fannie Mae and Freddie Mac. [There are] constructive things Congress can do that will encourage the housing market to correct quickly by … helping people stay in their homes." (President George W. Bush, Meeting With Cabinet, the White House, 4/14/08)

--May 2008-- President Bush issues several pleas to Congress to pass legislation reforming Fannie Mae and Freddie Mac before the situation deteriorates further.

--June 2008-- President once again asks Congress to take the necessary measures to address this challenge, saying "we need to pass legislation to reform Fannie Mae and Freddie Mac." (President George W. Bush, Remarks At Swearing In Ceremony For Secretary Of Housing And Urban Development, Washington, D.C., 6/6/08)

--2008-- Fannie and Freddie have purchased about 80% of all new home mortgages in the United States. Their combined investment portfolios held mortgage assets (loans and MBSs) valued at $1.5 trillion (as of June 30, 2008) - These GSE will never pay back tax payer for losses like all the banks have.

--April 2009-- Obama on his world appology tour in Strasbourg, France "difficult to imagine that the inability of somebody to pay for a house in Florida could contribute to the failure of the banking system in Iceland. Today what's difficult to imagine is that we did not act sooner to shape our future."

--JULY 2009-- Committee on Oversight and Government Reform released a report on The Role of Government Affordable Housing Policy in Creating the Global Financial Crisis of 2008

 

[edthecynic]

Absolutely wrong, Clinton created FHA DPA in '96, ADDI funds a very small demographic, almost minute, the income limitations where calculated with some common sense, in Harris County our Commissioner Court presides over the approval, as recently as '09 they raised the Purchase Price Limit because the Federal Funds had not been used, also the borrower has to fit into traditional FHA DITI Ratio's.........

I will refrain from the insults, but you bought the ocean front property in AZ and don't even know it......

Everything changed for the worse after ADDI was passed in Dec 2003. 2004 marked the beginning of the end of the housing market. Even LimpTard admits it.

July 7,2010
BREAK TRANSCRIPT

RUSH:* To illustrate my point even further: "Subprime mortgages accounted for 9 percent of all mortgage originations from 1996 through 2004."* But that 9% became 21% from 2004 to 2006, 21% of all mortgages were subprime.* Twenty-one percent of all mortgages were essentially money given away to people because they were loans made to people that everybody knew going in would never pay them back.* And that 21% of the mortgage market being subprime equaled about $600,000 billion in 2006, which was at the time one-fifth of the US home loan market.*

ADDI Funds had nothing to do with Sub Prime lending, not even close......

You can try as hard as you want, but Carter & Clinton's finger prints are all over this one.....

Carter and Clinton had nothing to do with Bush's economic failure. Neither were president in 2004 when ADDI killed the housing market. Before ADDI you had to have good credit, a down payment and you couldn't finance the whole price of the property. After Bush's ADDI people with bad credit got not only no down payment loans they got closing costs and extra money to fix up the purchase. Bush was warned about the low level of required capital involved at the time and he just made everything worse by eliminating any capital from the buyer and throwing in some additional capital from the government. Bush was president and his Party controlled both houses so Clinton and Carter were powerless to stop Bush from destroying this great country CON$ hate so much. BUSH owns the economic failure.

 

[GWV5903]

Everything changed for the worse after ADDI was passed in Dec 2003. 2004 marked the beginning of the end of the housing market. Even LimpTard admits it.

July 7,2010
BREAK TRANSCRIPT

RUSH:* To illustrate my point even further: "Subprime mortgages accounted for 9 percent of all mortgage originations from 1996 through 2004."* But that 9% became 21% from 2004 to 2006, 21% of all mortgages were subprime.* Twenty-one percent of all mortgages were essentially money given away to people because they were loans made to people that everybody knew going in would never pay them back.* And that 21% of the mortgage market being subprime equaled about $600,000 billion in 2006, which was at the time one-fifth of the US home loan market.*

ADDI Funds had nothing to do with Sub Prime lending, not even close......

You can try as hard as you want, but Carter & Clinton's finger prints are all over this one.....

Carter and Clinton had nothing to do with Bush's economic failure. Neither were president in 2004 when ADDI killed the housing market. Before ADDI you had to have good credit, a down payment and you couldn't finance the whole price of the property. After Bush's ADDI people with bad credit got not only no down payment loans they got closing costs and extra money to fix up the purchase. Bush was warned about the low level of required capital involved at the time and he just made everything worse by eliminating any capital from the buyer and throwing in some additional capital from the government. Bush was president and his Party controlled both houses so Clinton and Carter were powerless to stop Bush from destroying this great country CON$ hate so much. BUSH owns the economic failure.

Ed your out of your league, Clinton was POTUS when Sub Prime loans where born in '93, FHA DPA (Down Payment Assistance) was also born with the Clinton Administration in late '96, DPA rolled in the Down Payment & Closing Cost, the appraisal was inflated to cover this, HUD had a loophole that a third party Non Profit could give the money to the borrower, organizations like Nehemiah, AmeriDream, American Family Funds, etc... took the money from title (these funds where coming from the seller) and wired it back for the borrower to close for a nominal fee, anywhere from $300 to $500, this fee was also rolled in, here is a link FHA Down Payment Grants | Ameridream, Nehemiah, and more., also, here you can see how Bush shut it down!?!?!

Brooksley Born blew the whistle and the Clinton Administration claimed she was wrong!?!?! Take sometime to view this link FRONTLINE: the warning: watch the full program online | PBS , keep trying though I don't care......

 

[edthecynic]

ADDI Funds had nothing to do with Sub Prime lending, not even close......

You can try as hard as you want, but Carter & Clinton's finger prints are all over this one.....

Carter and Clinton had nothing to do with Bush's economic failure. Neither were president in 2004 when ADDI killed the housing market. Before ADDI you had to have good credit, a down payment and you couldn't finance the whole price of the property. After Bush's ADDI people with bad credit got not only no down payment loans they got closing costs and extra money to fix up the purchase. Bush was warned about the low level of required capital involved at the time and he just made everything worse by eliminating any capital from the buyer and throwing in some additional capital from the government. Bush was president and his Party controlled both houses so Clinton and Carter were powerless to stop Bush from destroying this great country CON$ hate so much. BUSH owns the economic failure.

Ed your out of your league, Clinton was POTUS when Sub Prime loans where born in '93, FHA DPA (Down Payment Assistance) was also born with the Clinton Administration in late '96, DPA rolled in the Down Payment & Closing Cost, the appraisal was inflated to cover this, HUD had a loophole that a third party Non Profit could give the money to the borrower, organizations like Nehemiah, AmeriDream, American Family Funds, etc... took the money from title (these funds where coming from the seller) and wired it back for the borrower to close for a nominal fee, anywhere from $300 to $500, this fee was also rolled in, here is a link FHA Down Payment Grants | Ameridream, Nehemiah, and more., also, here you can see how Bush shut it down!?!?!

Brooksley Born blew the whistle and the Clinton Administration claimed she was wrong!?!?! Take sometime to view this link FRONTLINE: the warning: watch the full program online | PBS , keep trying though I don't care......

GWB5903 you are out of your league. It doesn't matter when sub primes were born, Bush killed them in 2004 with the Dec 2003 passage of his ADDI. 2004 is when the housing market went south so something that happened in 1993 was not the cause. It was Bush who changed the rules allowing people with bad credit not only no down payment loans but for more than the property is worth and including closing costs. Before Bush, buyers had to have SOME skin in the game But after Bush you didn't even have to be able to make payments. That's ALL Bush, not Carter and not Clinton.

 

[GWV5903]

Carter and Clinton had nothing to do with Bush's economic failure. Neither were president in 2004 when ADDI killed the housing market. Before ADDI you had to have good credit, a down payment and you couldn't finance the whole price of the property. After Bush's ADDI people with bad credit got not only no down payment loans they got closing costs and extra money to fix up the purchase. Bush was warned about the low level of required capital involved at the time and he just made everything worse by eliminating any capital from the buyer and throwing in some additional capital from the government. Bush was president and his Party controlled both houses so Clinton and Carter were powerless to stop Bush from destroying this great country CON$ hate so much. BUSH owns the economic failure.

Ed your out of your league, Clinton was POTUS when Sub Prime loans where born in '93, FHA DPA (Down Payment Assistance) was also born with the Clinton Administration in late '96, DPA rolled in the Down Payment & Closing Cost, the appraisal was inflated to cover this, HUD had a loophole that a third party Non Profit could give the money to the borrower, organizations like Nehemiah, AmeriDream, American Family Funds, etc... took the money from title (these funds where coming from the seller) and wired it back for the borrower to close for a nominal fee, anywhere from $300 to $500, this fee was also rolled in, here is a link FHA Down Payment Grants | Ameridream, Nehemiah, and more., also, here you can see how Bush shut it down!?!?!

Brooksley Born blew the whistle and the Clinton Administration claimed she was wrong!?!?! Take sometime to view this link FRONTLINE: the warning: watch the full program online | PBS , keep trying though I don't care......

GWB5903 you are out of your league. It doesn't matter when sub primes were born, Bush killed them in 2004 with the Dec 2003 passage of his ADDI. 2004 is when the housing market went south so something that happened in 1993 was not the cause. It was Bush who changed the rules allowing people with bad credit not only no down payment loans but for more than the property is worth and including closing costs. Before Bush, buyers had to have SOME skin in the game But after Bush you didn't even have to be able to make payments. That's ALL Bush, not Carter and not Clinton.

edthegimmic you missed the part when the teacher said think for yourself, keep trying by maybe you'll loosen something up.......

 

[CrusaderFrank]

Aug 2010 Update: The government through Fannie, Freddie and FHA controls 100% of the US housing market, they've driven private companies from the market, States can no longer issue floating rate bonds because no private lender wants to take the remarketing risk.

Fannie and Freddie were exempt from Obama's Wall Street takeover ("reform") and they're still devouring tax payer capital

Is everybody happy?

 

[Gadawg73]

Franklin Raines.
The government had oversight over Fannie/Freddie. They allowed them to write loan guidelines that allowed for abuse like improper documentation coupled with very low downpayments that resulted in people defaulting and the lender unable to recoup his loss on the property.
Sure the mortgagors are at fault for taking loans they couldn't pay but the lenders are equally at fault for offering loans that didnt adequately protect them from loss.

I have said allalong it is the fault of the banks.
NOT GOVERNMENT.
And Raines was not forced to sign loan documents.
The banks fucked themselves. Noone forced them to do a damn thing.
The banks lobbied and wanted those easier requirements.
Again, give me the name of ANYONE that was helddown and forced to sign loan documents.
BTW, it was Mudd that fuckedit all up, not Raines. Raines was a crook but it was under Bush that the problems worsened with Mudd.

Of course Raines was responsible. If not Raines, some executive at Fannie. Fannie was under gov't supervision and had to do what they were told.
Banks screwed themselves in part because they could sell the paper to Fannie. If that market had disappeared they could not have made the loans to begin with. They might have made other more stupid loans (e.g. loans to 3rd world countries like in the 1970s) but that is irrelevant here.
The banks lobbied to dissolve Fannie because they saw (correctly) unfair competition from the government for a market that they themselves wanted. The gov't continued the subsidy of Fannie because it lowered rates and thus benefitted borrowers, who not coincidentally are also voters.

The banks did lobby to dissolve Fannie Frank.
7 weeks ago.
That had absolutely nothing to do with what happened over the last decade that led to the recession and fall out in real estate.
What you are speaking of is over the last 3-6 month window if that.

 

[Gadawg73]

ADDI Funds had nothing to do with Sub Prime lending, not even close......

You can try as hard as you want, but Carter & Clinton's finger prints are all over this one.....

Carter and Clinton had nothing to do with Bush's economic failure. Neither were president in 2004 when ADDI killed the housing market. Before ADDI you had to have good credit, a down payment and you couldn't finance the whole price of the property. After Bush's ADDI people with bad credit got not only no down payment loans they got closing costs and extra money to fix up the purchase. Bush was warned about the low level of required capital involved at the time and he just made everything worse by eliminating any capital from the buyer and throwing in some additional capital from the government. Bush was president and his Party controlled both houses so Clinton and Carter were powerless to stop Bush from destroying this great country CON$ hate so much. BUSH owns the economic failure.

Ed your out of your league, Clinton was POTUS when Sub Prime loans where born in '93, FHA DPA (Down Payment Assistance) was also born with the Clinton Administration in late '96, DPA rolled in the Down Payment & Closing Cost, the appraisal was inflated to cover this, HUD had a loophole that a third party Non Profit could give the money to the borrower, organizations like Nehemiah, AmeriDream, American Family Funds, etc... took the money from title (these funds where coming from the seller) and wired it back for the borrower to close for a nominal fee, anywhere from $300 to $500, this fee was also rolled in, here is a link FHA Down Payment Grants | Ameridream, Nehemiah, and more., also, here you can see how Bush shut it down!?!?!

Brooksley Born blew the whistle and the Clinton Administration claimed she was wrong!?!?! Take sometime to view this link FRONTLINE: the warning: watch the full program online | PBS , keep trying though I don't care......

Republican Congress

 

[GWV5903]

Carter and Clinton had nothing to do with Bush's economic failure. Neither were president in 2004 when ADDI killed the housing market. Before ADDI you had to have good credit, a down payment and you couldn't finance the whole price of the property. After Bush's ADDI people with bad credit got not only no down payment loans they got closing costs and extra money to fix up the purchase. Bush was warned about the low level of required capital involved at the time and he just made everything worse by eliminating any capital from the buyer and throwing in some additional capital from the government. Bush was president and his Party controlled both houses so Clinton and Carter were powerless to stop Bush from destroying this great country CON$ hate so much. BUSH owns the economic failure.

Ed your out of your league, Clinton was POTUS when Sub Prime loans where born in '93, FHA DPA (Down Payment Assistance) was also born with the Clinton Administration in late '96, DPA rolled in the Down Payment & Closing Cost, the appraisal was inflated to cover this, HUD had a loophole that a third party Non Profit could give the money to the borrower, organizations like Nehemiah, AmeriDream, American Family Funds, etc... took the money from title (these funds where coming from the seller) and wired it back for the borrower to close for a nominal fee, anywhere from $300 to $500, this fee was also rolled in, here is a link FHA Down Payment Grants | Ameridream, Nehemiah, and more., also, here you can see how Bush shut it down!?!?!

Brooksley Born blew the whistle and the Clinton Administration claimed she was wrong!?!?! Take sometime to view this link FRONTLINE: the warning: watch the full program online | PBS , keep trying though I don't care......

Republican Congress

Democrat Administration