Sub prime facts

Discussion in 'Politics' started by Truthmatters, Jul 31, 2011.

  1. Truthmatters
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    Private sector loans, not Fannie or Freddie, triggered crisis | McClatchy


    Federal Reserve Board data show that:
    • More than 84 percent of the subprime mortgages in 2006 were issued by private lending institutions.



    • Private firms made nearly 83 percent of the subprime loans to low- and moderate-income borrowers that year.



    • Only one of the top 25 subprime lenders in 2006 was directly subject to the housing law that's being lambasted by conservative critics.


    Read more: http://www.mcclatchydc.com/2008/10/12/53802/private-sector-loans-not-fannie.html#ixzz1Tj8MmthM
     
    Last edited: Jul 31, 2011
  2. Avorysuds
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    Avorysuds Gold Member

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    I just love LOLing at you.
     
  3. NYcarbineer
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    NYcarbineer Diamond Member

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    Uh, just for the record, Fannie and Freddie ARE private companies. That fact seems to have been somewhat disfigured in all this mortgage talk that goes on.

    And the sub-prime mortgages were issued because banks WANTED them, for the do-re-mi, as they used to say.

    Pure greed.
     
  4. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    Fannie and Freddie finance about 40 percent of all U.S. mortgages, with $5.3 trillion in outstanding debt.
    How HUD Mortgage Policy Fed The Crisis
    Wow, TM's wrong. How, unusual.
     
  5. Trajan
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    Trajan conscientia mille testes

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    they are government sponsored entities.....yes, your right Johnson exhibited nothing but pure greed as he drove us into a ditch.
     
  6. snjmom
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    snjmom VIP Member

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    The securities purchases were driven by FM's shareholders.
     
  7. Truthmatters
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    where did you prove me wrong about anything?
     
  8. oreo
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    oreo Gold Member Supporting Member

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    For God Sakes--Fannie Mae used sub-prime mortgages.

    Fannie Mae Eases Credit To Aid Mortgage Lending - NYTimes.com
     
  9. Truthmatters
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    Between 2004 and 2006, when subprime lending was exploding, Fannie and Freddie went from holding a high of 48 percent of the subprime loans that were sold into the secondary market to holding about 24 percent, according to data from Inside Mortgage Finance, a specialty publication. One reason is that Fannie and Freddie were subject to tougher standards than many of the unregulated players in the private sector who weakened lending standards, most of whom have gone bankrupt or are now in deep trouble.

    During those same explosive three years, private investment banks — not Fannie and Freddie — dominated the mortgage loans that were packaged and sold into the secondary mortgage market. In 2005 and 2006, the private sector securitized almost two thirds of all U.S. mortgages, supplanting Fannie and Freddie, according to a number of specialty publications that track this data.


    Read more: Private sector loans, not Fannie or Freddie, triggered crisis | McClatchy
     
  10. 8537
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    8537 Senior Member

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    Well isn't that interesting.

    Tell me, how much did the private sector buy during that time? Did the GSE's market share increase or decrease?

    <hint: it decreased>
     

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