PoliticalChic
Diamond Member
- Thread starter
- #61
The CRA had nothing to do with Bush's housing bubble, and you well know it. The CRA was instituted to combat Red-Lining and required down payments from QUALIFIED buyers.Congress passed a bill in 1975 requiring banks to provide the government with information on their lending activities in poor urban areas. Two years later, it passed the Community Reinvestment Act (CRA), which gave regulators the power to deny banks the right to expand if they didn’t lend sufficiently in those neighborhoods. In 1979 the FDIC used the CRA to block a move by the Greater NY Savings Bank for not enough lending.Translation, the government FORCED the banks to lie cheat and steal."The Big Short is an entertaining movie, and it accurately describes important aspects of the housing bubble, but the film might give viewers the erroneous impression that private greed is the ultimate explanation. In reality, government intervention crippled the market’s normal mechanisms for limiting mistakes on the front end and heavily punishing mistakes on the back end."
December 07, 2011
RUSH: But these financial houses were selling what they knew was worthless because they had been forced to make these loans by government in the first place, and they were selling worthless paper for high prices.
Bush on the other hand, in his campaign push to add 5.5 million new minority homeowners eliminated down payments and closing costs, allowed loans to borrowers with bad credit for more than the home was worth.
Bush owns the housing crash.
It was Bush's Dec 2003 American Dream Downpayment Initiative (ADDI) that changed the rules to allow no downpayment loans for more than the house was worth to people with bad credit who could not keep up with the payments and who were at least 20% below the standard of living for the neighborhood they were buying into.
The ADDI was passed in Dec 2003 and everything in housing started to go bad in 2004. Even your MessiahRushie admits 2004 was the turning point for the Bush Housing Crash.
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.
President Hosts Conference on Minority Homeownership
October 2002
I set an ambitious goal. It's one that I believe we can achieve. It's a clear goal, that by the end of this decade we'll increase the number of minority homeowners by at least 5.5 million families. (Applause.)
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.
See that!
I gave you the chance to prove you are educable....
.....but you failed.
So sad.