NY Times 1999: Fannie Mae Eases Credit To Aid Mortgage Lending

Discussion in 'Economy' started by KMAN, Oct 2, 2008.

  1. KMAN
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    KMAN Senior Member

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  2. Chris
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    Chris Gold Member

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    McCain's Economic Adviser is ex-Texas Sen. Phil Gramm. On Dec. 15, 2000, hours before Congress was to leave for Christmas recess, Gramm had a 262-page amendment slipped into the appropriations bill. It forbade federal agencies to regulate the financial derivatives that greased the skids for passing along risky mortgage-backed securities to investors. And that, my friends, is why everything's falling apart. That is why the taxpayers are now on the hook for the follies of Fannie Mae, Freddie Mac, Bear Stearns and now the insurance giant AIG to the tune of $700 billion.
     
  3. PeterS
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    PeterS Active Member

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    >>snip<<
    "Under Fannie Mae's pilot program, consumers who qualify can secure a mortgage with an interest rate one percentage point above that of a conventional, 30-year fixed rate mortgage of less than $240,000 -- a rate that currently averages about 7.76 per cent. If the borrower makes his or her monthly payments on time for two years, the one percentage point premium is dropped."

    This has nothing to do with sub-prime nor the problems we face today. Do you have a point?
     
  4. editec
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    editec Mr. Forgot-it-All

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    Yes, on the top of his head, obviously.
     
  5. KMAN
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    KMAN Senior Member

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    Hello!!!!! This isn't what is happening?????

    ''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''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.''
     

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