Housing Starts Soar

[GWV5903]

The standards where altered because of CRA...

SERIOUSLY? lol


From Bush’s President’s Working Group on Financial Markets October 2008

“The Presidents Working Group’s March policy statement acknowledged that turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007.”



Q Did the Community Reinvestment Act under Carter/Clinton caused it?


A "Since 1995 there has been essentially no change in the basic CRA rules or enforcement process that can be reasonably linked to the subprime lending activity. This fact weakens the link between the CRA and the current crisis since the crisis is rooted in poor performance of mortgage loans made between 2004 and 2007. "

http://www.federalreserve.gov/newsevents/speech/20081203_analysis.pdf



November 27, 2007

A Snapshot of the Subprime Market



Dollar amount of subprime loans outstanding:

2007 $1.3 trillion

Dollar amount of subprime loans outstanding in 2003: $332 billion

Percentage increase from 2003: 292%


Number of subprime mortgages made in 2005-2006 projected to end in foreclosure:

1 in 5



Proportion of subprime mortgages made from 2004 to 2006 that come with "exploding" adjustable interest rates: 89-93%


Proportion approved without fully documented income: 43-50%


Proportion with no escrow for taxes and insurance: 75%



Proportion of completed foreclosures attributable to adjustable rate loans out of all loans made in 2006 and bundled in subprime mortgage backed securities: 93%


Subprime share of all mortgage originations in 2006: 28%

Subprime share of all mortgage origination in 2003: 8%

CRA THAT HADN'T CHANGED, EXCEPT WEAKENED ENFORCEMENT UNDER DUBYA CAUSED THE SUBPRIME CRISIS? LOL

FACTS on Dubya s great recession US Message Board - Political Discussion Forum

Clinton revised the CRA in '96 to open up FHA DPA FACT!

You have no clue about this...

 

[GWV5903]

Right-wingers Want To Erase How George Bush's "Homeowner Society" Helped Cause The Economic Collapse


2004 Republican Convention:

Another priority for a new term is to build an ownership society, because ownership brings security and dignity and independence.
...

Thanks to our policies, home ownership in America is at an all- time high.

(APPLAUSE)

Tonight we set a new goal: 7 million more affordable homes in the next 10 years, so more American families will be able to open the door and say, "Welcome to my home."


June 17, 2004


Builders to fight Bush's low-income plan


NEW YORK (CNN/Money) - Home builders, realtors and others are preparing to fight a Bush administration plan that would require Fannie Mae and Freddie Mac to increase financing of homes for low-income people, a home builder group said Thursday.


Bushs documented policies and statements in timeframe leading up to the start of the Bush Mortgage Bubble include (but not limited to)

Wanting 5.5 million more minority homeowners
Tells congress there is nothing wrong with GSEs
Pledging to use federal policy to increase home ownership
Routinely taking credit for the housing market
Forcing GSEs to buy more low income home loans by raising their Housing Goals
Lowering Invesntment banks capital requirements, Net Capital rule
Reversing the Clinton rule that restricted GSEs purchases of subprime loans
Lowering down payment requirements to 0%
Forcing GSEs to spend an additional $440 billion in the secondary markets
Giving away 40,000 free down payments

PREEMPTING ALL STATE LAWS AGAINST PREDATORY LENDING


FACTS on Dubya s great recession US Message Board - Political Discussion Forum

But the biggest policy was regulators not enforcing lending standards.

The standards where altered because of CRA...

SURE

Most subprime lenders weren't subject to federal lending law

Community Reinvestment Act, blamed for home market crash, didn't apply to the banks that did the most lending.





BANKSTER:
Bob Davis, executive vice president of the American Bankers Association, which lobbies Congress to streamline community reinvestment rules, said "it just isn't credible" to blame the law CRA for the crisis.

"Institutions that are subject to CRA - that is, banks and savings asociations - were largely not involved in subprime lending," Davis said. "The bulk of the loans came through a channel that was not subject to CRA."


Most subprime lenders weren t subject to federal lending law - The Orange County Register

Examining the big lie: How the facts of the economic crisis stack up

Here are key things we know based on data. Together, they present a series of tough hurdles for the big lie proponents.

•The boom and bust was global. Proponents of the Big Lie ignore the worldwide nature of the housing boom and bust.

A McKinsey Global Institute report noted “from 2000 through 2007, a remarkable run-up in global home prices occurred.” It is highly unlikely that a simultaneous boom and bust everywhere else in the world was caused by one set of factors (ultra-low rates, securitized AAA-rated subprime, derivatives) but had a different set of causes in the United States. Indeed, this might be the biggest obstacle to pushing the false narrative. How did U.S. regulations against redlining in inner cities also cause a boom in Spain, Ireland and Australia? How can we explain the boom occurring in countries that do not have a tax deduction for mortgage interest or government-sponsored enterprises? And why, after nearly a century of mortgage interest deduction in the United States, did it suddenly cause a crisis?

These questions show why proximity and statistical validity are so important. Let’s get more specific.The Community Reinvestment Act of 1977 is a favorite boogeyman for some, despite the numbers that so easily disprove it as a cause.It is a statistical invalid argument, as the data show.

For example, if the CRA was to blame, the housing boom would have been in CRA regions; it would have made places such as Harlem and South Philly and Compton and inner Washington the primary locales of the run up and collapse. Further, the default rates in these areas should have been worse than other regions.

>

CRA were less likely to default than Subprime Mortgages — Source: University of North Carolina at Chapel Hill
>
What occurred was the exact opposite: The suburbs boomed and busted and went into foreclosure in much greater numbers than inner cities. The tiny suburbs and exurbs of South Florida and California and Las Vegas and Arizona were the big boomtowns, not the low-income regions. The redlined areas the CRA address missed much of the boom; places that busted had nothing to do with the CRA.

Examining the big lie How the facts of the economic crisis stack up The Big Picture


Right-wingers Want To Erase How George Bush's "Homeowner Society" Helped Cause The Economic Collapse


FACTS on Dubya s great recession Page 16 US Message Board - Political Discussion Forum

How many loans have you closed?

How many?

I can't hear you?

Oh that's right, you have never closed a mortgage...

My little toe on my left foot knows more about this subject than you will EVER know...

 

[EdwardBaiamonte]

Right-wingers Want To Erase How George Bush's "Homeowner Society" Helped Cause The Economic Collapse
.

why would they care since Bush was not a conservative and since there was massive liberal inteference with the housing market that caused it to collapse much the way the USSR and Red China collapsed?

 

[Samson]

What could possibly go wrong?

 

[EdwardBaiamonte]

Right-wingers Want To Erase How George Bush's "Homeowner Society" Helped Cause The Economic Collapse

yes dear thats because the right wing is against liberal govt intervention in the housing market!
You have been taught that 100 times now. See why they call you dumbto3?

Weird how the GOP and Dubya did just that right?

whats weird is how liberal interference leads to poverty and yet liberals always call for more of it no matter how much there already is. Without Republicans the libcommies would be pure commies and America as we know it would be gone.

 

[Dad2three]

The standards where altered because of CRA...

SERIOUSLY? lol


From Bush’s President’s Working Group on Financial Markets October 2008

“The Presidents Working Group’s March policy statement acknowledged that turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007.”



Q Did the Community Reinvestment Act under Carter/Clinton caused it?


A "Since 1995 there has been essentially no change in the basic CRA rules or enforcement process that can be reasonably linked to the subprime lending activity. This fact weakens the link between the CRA and the current crisis since the crisis is rooted in poor performance of mortgage loans made between 2004 and 2007. "

http://www.federalreserve.gov/newsevents/speech/20081203_analysis.pdf



November 27, 2007

A Snapshot of the Subprime Market



Dollar amount of subprime loans outstanding:

2007 $1.3 trillion

Dollar amount of subprime loans outstanding in 2003: $332 billion

Percentage increase from 2003: 292%


Number of subprime mortgages made in 2005-2006 projected to end in foreclosure:

1 in 5



Proportion of subprime mortgages made from 2004 to 2006 that come with "exploding" adjustable interest rates: 89-93%


Proportion approved without fully documented income: 43-50%


Proportion with no escrow for taxes and insurance: 75%



Proportion of completed foreclosures attributable to adjustable rate loans out of all loans made in 2006 and bundled in subprime mortgage backed securities: 93%


Subprime share of all mortgage originations in 2006: 28%

Subprime share of all mortgage origination in 2003: 8%

CRA THAT HADN'T CHANGED, EXCEPT WEAKENED ENFORCEMENT UNDER DUBYA CAUSED THE SUBPRIME CRISIS? LOL

FACTS on Dubya s great recession US Message Board - Political Discussion Forum

Clinton revised the CRA in '96 to open up FHA DPA FACT!

You have no clue about this...

AND

"
From Bush’s President’s Working Group on Financial Markets October 2008

“The Presidents Working Group’s March policy statement acknowledged that turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007.”

MORON

 

[Dad2three]

How many loans have you closed?

How many?

I can't hear you?

Oh that's right, you have never closed a mortgage...

My little toe on my left foot knows more about this subject than you will EVER know...

And? Gawdd YOU are a moron. Yeah, it was Clinton changing CRA in 1996 which Dubya had weakening enforcement for that caused the subprime crisis ' LATE 2004 EXTENDING INTO 2007'

FUKKKING DUMBASS

FACTS on Dubya s great recession US Message Board - Political Discussion Forum

 

[Dad2three]

why would they care since Bush was not a conservative and since there was massive liberal inteference with the housing market that caused it to collapse much the way the USSR and Red China collapsed?

Weird EVERY GOPer supported Dubya's zero down programs

AND there was a WORLD WIDE CREDIT BUBBLE AND BUST, THAT WAS BECAUSE OF LIBERALS TO MORON? LOL

 

[GWV5903]

The standards where altered because of CRA...

SERIOUSLY? lol


From Bush’s President’s Working Group on Financial Markets October 2008

“The Presidents Working Group’s March policy statement acknowledged that turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007.”



Q Did the Community Reinvestment Act under Carter/Clinton caused it?


A "Since 1995 there has been essentially no change in the basic CRA rules or enforcement process that can be reasonably linked to the subprime lending activity. This fact weakens the link between the CRA and the current crisis since the crisis is rooted in poor performance of mortgage loans made between 2004 and 2007. "

http://www.federalreserve.gov/newsevents/speech/20081203_analysis.pdf



November 27, 2007

A Snapshot of the Subprime Market



Dollar amount of subprime loans outstanding:

2007 $1.3 trillion

Dollar amount of subprime loans outstanding in 2003: $332 billion

Percentage increase from 2003: 292%


Number of subprime mortgages made in 2005-2006 projected to end in foreclosure:

1 in 5



Proportion of subprime mortgages made from 2004 to 2006 that come with "exploding" adjustable interest rates: 89-93%


Proportion approved without fully documented income: 43-50%


Proportion with no escrow for taxes and insurance: 75%



Proportion of completed foreclosures attributable to adjustable rate loans out of all loans made in 2006 and bundled in subprime mortgage backed securities: 93%


Subprime share of all mortgage originations in 2006: 28%

Subprime share of all mortgage origination in 2003: 8%

CRA THAT HADN'T CHANGED, EXCEPT WEAKENED ENFORCEMENT UNDER DUBYA CAUSED THE SUBPRIME CRISIS? LOL

FACTS on Dubya s great recession US Message Board - Political Discussion Forum

Clinton revised the CRA in '96 to open up FHA DPA FACT!

You have no clue about this...

AND

"
From Bush’s President’s Working Group on Financial Markets October 2008

“The Presidents Working Group’s March policy statement acknowledged that turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007.”

MORON

Again you have no clue, your only retort is name calling...

Where are your facts that dispute Clinton's revision of CRA in '96???

Google can't find it for you?

 

[GWV5903]

How many loans have you closed?

How many?

I can't hear you?

Oh that's right, you have never closed a mortgage...

My little toe on my left foot knows more about this subject than you will EVER know...

And? Gawdd YOU are a moron. Yeah, it was Clinton changing CRA in 1996 which Dubya had weakening enforcement for that caused the subprime crisis ' LATE 2004 EXTENDING INTO 2007'

FUKKKING DUMBASS

FACTS on Dubya s great recession US Message Board - Political Discussion Forum

ROFLMAO...

If you say so, LOL!!!

 

[GWV5903]

The standards where altered because of CRA...

SERIOUSLY? lol


From Bush’s President’s Working Group on Financial Markets October 2008

“The Presidents Working Group’s March policy statement acknowledged that turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007.”



Q Did the Community Reinvestment Act under Carter/Clinton caused it?


A "Since 1995 there has been essentially no change in the basic CRA rules or enforcement process that can be reasonably linked to the subprime lending activity. This fact weakens the link between the CRA and the current crisis since the crisis is rooted in poor performance of mortgage loans made between 2004 and 2007. "

http://www.federalreserve.gov/newsevents/speech/20081203_analysis.pdf



November 27, 2007

A Snapshot of the Subprime Market



Dollar amount of subprime loans outstanding:

2007 $1.3 trillion

Dollar amount of subprime loans outstanding in 2003: $332 billion

Percentage increase from 2003: 292%


Number of subprime mortgages made in 2005-2006 projected to end in foreclosure:

1 in 5



Proportion of subprime mortgages made from 2004 to 2006 that come with "exploding" adjustable interest rates: 89-93%


Proportion approved without fully documented income: 43-50%


Proportion with no escrow for taxes and insurance: 75%



Proportion of completed foreclosures attributable to adjustable rate loans out of all loans made in 2006 and bundled in subprime mortgage backed securities: 93%


Subprime share of all mortgage originations in 2006: 28%

Subprime share of all mortgage origination in 2003: 8%

CRA THAT HADN'T CHANGED, EXCEPT WEAKENED ENFORCEMENT UNDER DUBYA CAUSED THE SUBPRIME CRISIS? LOL

FACTS on Dubya s great recession US Message Board - Political Discussion Forum

Clinton revised the CRA in '96 to open up FHA DPA FACT!

You have no clue about this...

AND

"
From Bush’s President’s Working Group on Financial Markets October 2008

“The Presidents Working Group’s March policy statement acknowledged that turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007.”

MORON

So what is it you do again?

You whack your doodle?

Or is it you doodle your whack?

 

[GWV5903]

The standards where altered because of CRA...

SERIOUSLY? lol


From Bush’s President’s Working Group on Financial Markets October 2008

“The Presidents Working Group’s March policy statement acknowledged that turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007.”



Q Did the Community Reinvestment Act under Carter/Clinton caused it?

A "Since 1995 there has been essentially no change in the basic CRA rules or enforcement process that can be reasonably linked to the subprime lending activity. This fact weakens the link between the CRA and the current crisis since the crisis is rooted in poor performance of mortgage loans made between 2004 and 2007. "

http://www.federalreserve.gov/newsevents/speech/20081203_analysis.pdf



November 27, 2007

A Snapshot of the Subprime Market



Dollar amount of subprime loans outstanding:

2007 $1.3 trillion

Dollar amount of subprime loans outstanding in 2003: $332 billion

Percentage increase from 2003: 292%


Number of subprime mortgages made in 2005-2006 projected to end in foreclosure:

1 in 5



Proportion of subprime mortgages made from 2004 to 2006 that come with "exploding" adjustable interest rates: 89-93%


Proportion approved without fully documented income: 43-50%


Proportion with no escrow for taxes and insurance: 75%



Proportion of completed foreclosures attributable to adjustable rate loans out of all loans made in 2006 and bundled in subprime mortgage backed securities: 93%


Subprime share of all mortgage originations in 2006: 28%

Subprime share of all mortgage origination in 2003: 8%

CRA THAT HADN'T CHANGED, EXCEPT WEAKENED ENFORCEMENT UNDER DUBYA CAUSED THE SUBPRIME CRISIS? LOL

FACTS on Dubya s great recession US Message Board - Political Discussion Forum

Clinton revised the CRA in '96 to open up FHA DPA FACT!

You have no clue about this...

AND

"
From Bush’s President’s Working Group on Financial Markets October 2008

“The Presidents Working Group’s March policy statement acknowledged that turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007.”

MORON

Do you even have a clue what FHA DPA is?

If you know so much, why don't you explain it?

What is the FICO score requirement?

How much was the down payment?

 

[Dad2three]

Do you even have a clue what FHA DPA is?

If you know so much, why don't you explain it?

What is the FICO score requirement?

How much was the down payment?

WHY THE FUCK DON'T YOU HAVE A BRAIN? SERIOUSLY?

Down Payment Assistance

It is clear to anyone who has studied the financial crisis of 2008 that the private sector’s drive for short-term profit was behind it. More than 84 percent of the sub-prime mortgages in 2006 were issued by private lending. These private firms made nearly 83 percent of the subprime loans to low- and moderate-income borrowers that year.


Out of the top 25 subprime lenders in 2006, only one was subject to the usual mortgage laws and regulations.

The nonbank underwriters made more than 12 million subprime mortgages with a value of nearly $2 trillion. The lenders who made these were exempt from federal regulations.


Lest We Forget Why We Had A Financial Crisis - Forbes


Q HOLY JESUS! DID YOU JUST PROVE THAT OVER 50 % OF ALL MORTGAGES IN 2006 DIDNT REQUIRE BORROWERS TO DOCUMENT THEIR INCOME?!?!?!?

A Yes.




Q WHO THE HELL LOANS HUNDREDS OF THOUSANDS OF DOLLARS TO PEOPLE WITHOUT CHECKING THEIR INCOMES?!?!?

A Banks.

Q WHY??!?!!!?!

A Two reasons, greed and Bush's regulators let them


FACTS on Dubya s great recession US Message Board - Political Discussion Forum

 

[Dad2three]

Do you even have a clue what FHA DPA is?

If you know so much, why don't you explain it?

What is the FICO score requirement?



How much was the down payment?

FUCKING BANKSTERS GAVE LOANS TO ANYONE WHO WAS BREATHING? WHY?


The historical "originate and hold" mortgage model was replaced with the "originate and distribute" model. Incentives were such that you could get paid just to originate and sell the mortgages down the pipeline, passing the risk along.


BUSH REGULATOR FAILURE!!!


FACTS on Dubya s great recession US Message Board - Political Discussion Forum

 

[Dad2three]

So what is it you do again?

You whack your doodle?

Or is it you doodle your whack?

Got it, You can't refute Bankster created a WORLD WIDE CREDIT BUBBLE AND BUST AND DUBYA JUST CHEER LEAD THEM IGNORING WARNINGS!!!

 

[Dad2three]

ROFLMAO...

If you say so, LOL!!!

For someone who is SUPPOSED to work in the Biz, you sure are an ignorant tool using only ad homs and not actually addressing my well laid out Dubya regulator failure as the Banksters hosed US!


The FBI correctly identified the epidemic of mortgage control fraud at such an early point that the financial crisis could have been averted had the Bush administration acted with even minimal competence


Don't ask; don't tell: book profits, "earn" bonuses and closet your losses

The first document everyone should read is by S&P, the largest of the rating agencies. The context of the document is that a professional credit rater has told his superiors that he needs to examine the mortgage loan files to evaluate the risk of a complex financial derivative whose risk and market value depend on the credit quality of the nonprime mortgages "underlying" the derivative. A senior manager sends a blistering reply with this forceful punctuation:

Any request for loan level tapes is TOTALLY UNREASONABLE!!! Most investors don't have it and can't provide it. [W]e MUST produce a credit estimate. It is your responsibility to provide those credit estimates and your responsibility to devise some method for doing so.

The Two Documents Everyone Should Read to Better Understand the Crisis William K. Black

DUBYA:

FACTS on Dubya s great recession US Message Board - Political Discussion Forum

 

[Dad2three]

Again you have no clue, your only retort is name calling...

Where are your facts that dispute Clinton's revision of CRA in '96???

Google can't find it for you?

So you don't have a brain? What does the CRA changes that happened in 1996 have to do with Dubya's regulator failure of the subprime market that exploded 'LATE 2004 EXTENDING INTO 2007'?

 

[Dad2three]

The standards where altered because of CRA...

SERIOUSLY? lol


From Bush’s President’s Working Group on Financial Markets October 2008

“The Presidents Working Group’s March policy statement acknowledged that turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007.”



Q Did the Community Reinvestment Act under Carter/Clinton caused it?


A "Since 1995 there has been essentially no change in the basic CRA rules or enforcement process that can be reasonably linked to the subprime lending activity. This fact weakens the link between the CRA and the current crisis since the crisis is rooted in poor performance of mortgage loans made between 2004 and 2007. "

http://www.federalreserve.gov/newsevents/speech/20081203_analysis.pdf



November 27, 2007

A Snapshot of the Subprime Market



Dollar amount of subprime loans outstanding:

2007 $1.3 trillion

Dollar amount of subprime loans outstanding in 2003: $332 billion

Percentage increase from 2003: 292%


Number of subprime mortgages made in 2005-2006 projected to end in foreclosure:

1 in 5



Proportion of subprime mortgages made from 2004 to 2006 that come with "exploding" adjustable interest rates: 89-93%


Proportion approved without fully documented income: 43-50%


Proportion with no escrow for taxes and insurance: 75%



Proportion of completed foreclosures attributable to adjustable rate loans out of all loans made in 2006 and bundled in subprime mortgage backed securities: 93%


Subprime share of all mortgage originations in 2006: 28%

Subprime share of all mortgage origination in 2003: 8%

CRA THAT HADN'T CHANGED, EXCEPT WEAKENED ENFORCEMENT UNDER DUBYA CAUSED THE SUBPRIME CRISIS? LOL

FACTS on Dubya s great recession US Message Board - Political Discussion Forum

Clinton revised the CRA in '96 to open up FHA DPA FACT!

You have no clue about this...

AND

"
From Bush’s President’s Working Group on Financial Markets October 2008

“The Presidents Working Group’s March policy statement acknowledged that turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007.”

MORON

Again you have no clue, your only retort is name calling...

Where are your facts that dispute Clinton's revision of CRA in '96???

Google can't find it for you?

I'll give you credit for not blaming minority member of the GOP House 1995-2007 Barney Frank for Dubya's subprime bubble and bust Bubba. Beyond that trying to say Clinton had ANYTHING to do with it is just the usual right wing nonsense of NEVER being responsible for their failed ideology!

 

[EdwardBaiamonte]

the usual right wing nonsense of NEVER being responsible for their failed ideology!

dear, the right wing ideology is capitalism. Thanks to liberals there was very very little capitalism in the housing market!

Its hard to believe that's over your head despite numerous lessons, but that's why when they say you're dumbto3, it's an understatement. Why not grow up?

Now you know why there was a bubble in the housing market and not the banana market!! isn't thinking fun?

 

[boedicca]

The Obama Administration is hellbent on repeating history by pressuring banks to loan money to unqualified borrowers...cuz that worked so well in the 2000s.