5/1/23.....Biden to hike payments for good-credit homebuyers to subsidize high-risk mortgages

[Ordinary Guy]

My left wing source is saying your side is lying about this

The criticism might give the impression that, as a result of the change, people with good credit will actually pay higher fees than people with bad credit, but that’s not the case. Though the change reduced fees for some borrowers with worse credit, any borrower with a lower credit score still has to pay more for the same loan than a borrower with higher credit.

Why Republicans Are Upset About Mortgage Fees

The Mortgage Bankers Association says much of the mortgage fee freakout is inaccurate or outright misinformation.

www.huffpost.com

“Republicans are just trying to play this because it’s always, to them, about playing off the rich against middle class and the poor and playing to race.”

“Higher-credit-score borrowers are not being charged more so that lower-credit-score borrowers can pay less,” Thompson said in part. “The updated fees, as was true of the prior fees, generally increase as credit scores decrease for any given level of down payment.”

Industry groups have found themselves in an awkward position. The Mortgage Bankers Association, for instance, complained earlier this year that the higher fees would raise costs for borrowers at a difficult time for a housing market. But the group has sought to correct the misleading right-wing narrative about the fees.
“We’ve spent the past week responding to misinformation that spread from the media, to social media, to Capitol Hill on what the pricing framework means for borrowers,” MBA spokesman Adam DeSanctis said in a short video statement on Tuesday. “Borrowers with higher credit scores will still pay less than those with a lower credit score and the same down payment.”

Your source is full of shit, the bankers around here say it is just what is being reported. Good credit, higher rates and costs, bad credit lower on both. It is fucking bullshit, this is discrimination at the highest level, challenges will be coming

 

[pknopp]

Your source is full of shit, the bankers around here say it is just what is being reported.

LOL.

 

[sealybobo]

Even when presented with good valid evidence they are being lied to, some still can't stop themselves from running with the lie.

I like these 2 explanations

Camouflage

In this explanation, Trump lies incessantly so the little, pointless lies can provide cover for the big, important ones.

When we are overwhelmed with false, or potentially false, statements, our brains pretty quickly become so overworked that we stop trying to sift through everything. It's called cognitive load — our limited cognitive resources are overburdened. It doesn't matter how implausible the statements are; throw out enough of them, and people will inevitably absorb some. Eventually, without quite realizing it, our brains just give up trying to figure out what is true.

Loyalty

Trump could also lie because his subordinates and supporters will loyally participate in his deception, and Trump is all about loyalty.

One way Trump requires his underlings to lie is lying himself, telling a falsehood they must then perpetuate. George Mason University economist Tyler Cowen has theorized that this functions as a test of trust: "If you want to ascertain if someone is truly loyal to you, ask them to do something outrageous or stupid." And beyond demonstrating loyalty, Cowen says, this forced deception actively cultivates it by making subordinates "grow more dependent on the leader and less likely to mount independent rebellions against the structure of command."

The loyalty explanation works with Trump's fans, too. Believing or pretending to believe — it doesn't really matter, psychologically — Trump's outrageous claims fosters a sense of in-group solidarity. It's a sign of tribalism, sort of like a secret handshake or codeword. Talking about how Trump had the biggest inauguration crowd of all time shows you're in, and whether you sincerely believe the crowd was record-setting is irrelevant.

Trump himself has come close to offering this explanation, telling ABC News he does not have to give evidence to back his unfounded claims about mass voter fraud because "many people feel the same way that I do. … [T]hey're saying 'We agree with Mr. Trump. We agree.' They're very smart people."

6 theories on Trump's pointless lies

Why does Trump tell such easily disprovable falsehoods? Here are 6 possible explanations.

theweek.com

 

[1srelluc]

My left wing source is saying your side is lying about this

The criticism might give the impression that, as a result of the change, people with good credit will actually pay higher fees than people with bad credit, but that’s not the case. Though the change reduced fees for some borrowers with worse credit, any borrower with a lower credit score still has to pay more for the same loan than a borrower with higher credit.

Why Republicans Are Upset About Mortgage Fees

The Mortgage Bankers Association says much of the mortgage fee freakout is inaccurate or outright misinformation.

www.huffpost.com

“Republicans are just trying to play this because it’s always, to them, about playing off the rich against middle class and the poor and playing to race.”

“Higher-credit-score borrowers are not being charged more so that lower-credit-score borrowers can pay less,” Thompson said in part. “The updated fees, as was true of the prior fees, generally increase as credit scores decrease for any given level of down payment.”

Industry groups have found themselves in an awkward position. The Mortgage Bankers Association, for instance, complained earlier this year that the higher fees would raise costs for borrowers at a difficult time for a housing market. But the group has sought to correct the misleading right-wing narrative about the fees.
“We’ve spent the past week responding to misinformation that spread from the media, to social media, to Capitol Hill on what the pricing framework means for borrowers,” MBA spokesman Adam DeSanctis said in a short video statement on Tuesday. “Borrowers with higher credit scores will still pay less than those with a lower credit score and the same down payment.”

Huff-N-Puff as a source.....Yeah, smells about the same.

Nice doggy.

 

[Toddsterpatriot]

My left wing source is saying your side is lying about this

The criticism might give the impression that, as a result of the change, people with good credit will actually pay higher fees than people with bad credit, but that’s not the case. Though the change reduced fees for some borrowers with worse credit, any borrower with a lower credit score still has to pay more for the same loan than a borrower with higher credit.

Why Republicans Are Upset About Mortgage Fees

The Mortgage Bankers Association says much of the mortgage fee freakout is inaccurate or outright misinformation.

www.huffpost.com

“Republicans are just trying to play this because it’s always, to them, about playing off the rich against middle class and the poor and playing to race.”

“Higher-credit-score borrowers are not being charged more so that lower-credit-score borrowers can pay less,” Thompson said in part. “The updated fees, as was true of the prior fees, generally increase as credit scores decrease for any given level of down payment.”

Industry groups have found themselves in an awkward position. The Mortgage Bankers Association, for instance, complained earlier this year that the higher fees would raise costs for borrowers at a difficult time for a housing market. But the group has sought to correct the misleading right-wing narrative about the fees.
“We’ve spent the past week responding to misinformation that spread from the media, to social media, to Capitol Hill on what the pricing framework means for borrowers,” MBA spokesman Adam DeSanctis said in a short video statement on Tuesday. “Borrowers with higher credit scores will still pay less than those with a lower credit score and the same down payment.”

“Republicans are just trying to play this because it’s always, to them, about playing off the rich against middle class and the poor and playing to race.”

Sounds like CRT.

 

[sealybobo]

“Republicans are just trying to play this because it’s always, to them, about playing off the rich against middle class and the poor and playing to race.”

Sounds like CRT.

Not really. CRT teaches that systemic racism exists. Like Oklahoma Sheriff's saying in front of other Republicans, "man I miss the days we could lynch blacks"

Or when we find out the number one personality at the number one news show Fox for years has been spreading racist, homophobic and misogynistic propaganda.

These are people in power. Do you think they hire blacks? Now imagine how many whites in positions of power across America feel the same way. And you think CRT is the bad guy here?

 

[Toddsterpatriot]

Not really. CRT teaches that systemic racism exists. Like Oklahoma Sheriff's saying in front of other Republicans, "man I miss the days we could lynch blacks"

Or when we find out the number one personality at the number one news show Fox for years has been spreading racist, homophobic and misogynistic propaganda.

These are people in power. Do you think they hire blacks? Now imagine how many whites in positions of power across America feel the same way. And you think CRT is the bad guy here?

Like Oklahoma Sheriff's saying in front of other Republicans, "man I miss the days we could lynch blacks"

OMG! That's awful!

Why would a Republican want to be like a Democrat?

Do you need a tissue? A safe space?

 

[sealybobo]

Biden to hike payments for good-credit homebuyers to subsidize high-risk mortgages

Homebuyers with good credit scores will soon encounter a costly surprise: a new federal rule forcing them to pay higher mortgage rates and fees to subsidize people with riskier credit ratings who are also in the market to buy houses.

The fee changes will go into effect May 1 as part of the Federal Housing Finance Agency’s push for affordable housing, and they will affect mortgages originating at private banks across the country. The federally backed home mortgage companies Fannie Mae and Freddie Mac will enact the loan-level price adjustments, or LLPAs.

Mortgage industry specialists say homebuyers with credit scores of 680 or higher will pay, for example, about $40 per month more on a home loan of $400,000. Homebuyers who make down payments of 15% to 20% will get socked with the largest fees.

The new fees will apply only to Americans buying houses or refinancing after May 1.

Lenders and real estate agents say the changes will frustrate homebuyers with high credit scores and homeowners seeking to refinance because the rule punishes them for their relatively strong financial positions.

“The changes do not make sense. Penalizing borrowers with larger down payments and credit scores will not go over well,” Ian Wright, a senior loan officer at Bay Equity Home Loans in the San Francisco Bay Area, told The Washington Times in an email message. “It overcomplicates things for consumers during a process that can already feel overwhelming with the amount of paperwork, jargon, etc. Confusing the borrower is never a good thing.”

He said the rule will “cause customer-service issues for lenders and individual loan officers when a consumer won’t understand why their interest rate and fees suddenly changed.”

“I am all for the first-time buyer having a chance to get into the market, but it’s clear these decisions aren’t being made by folks that understand the entire mortgage process,” Mr. Wright said.

The new fees “will create extreme confusion as we enter the traditional spring home purchase season,” said David Stevens, a former head of the Mortgage Bankers Association who served as commissioner of the Federal Housing Administration during the Obama administration.

“This confusing approach won’t work and more importantly couldn’t come at a worse time for an industry struggling to get back on its feet after these past 12 months,” Mr. Stevens wrote in a recent social media post. “To do this at the onset of the spring market is almost offensive to the market, consumers, and lenders.”
The housing market has been hit hard by a series of Federal Reserve interest rate hikes that have driven mortgage rates above 6%, roughly double the level from early 2022.

Oh look, it starts May 1.....Commie redistribution of wealth day.

Let's see....$40 per month for 30 years = $14,400 over the life of the mortgage.

NPR did a hour long piece on the history of credit scores and how they came to be. They are good but also bad. They are purposely confusing. Did you know that? They don't tell you all the ways to raise your credit score because then people would game the system. What a bunch of horse shit.

My buddy told me it's not enough to pay off your credit card each month. Something about how much you borrow each month vs how much you are allowed to spend? If you spend too much and you aren't given a lot of credit, that can hurt your score. So I could be hurting my credit score by paying for everything on my credit card and paying it off each month. He said the secret is to pay your credit card off twice a month. Who would know that?



There's a lot of people out there that have no credit or bad credit but that's because they are poor. Or live in a particular zip code.

They said one way to raise your credit score would be to turn over all your information to these companies so you can show them you have a lot of money. But no one, including me, wants to give them all that information. So we may just be stuck with the current system.

One example they said should help poor people is paying their rent on time. Credit companies don't keep track of that. But they can tell if home owners miss mortgage payments. So renters don't get credit for paying their rent on time.

 

[sealybobo]

Your source is full of shit, the bankers around here say it is just what is being reported. Good credit, higher rates and costs, bad credit lower on both. It is fucking bullshit, this is discrimination at the highest level, challenges will be coming

It really is a game of the less you know, the more the person that you owe can earn from you.

For example, you've probably heard conflicting advice when it comes to your credit, like: You should pay off your credit card in full each month. And then, no, you shouldn't pay off your card in full each month, it's good to leave a little balance. Aliche says there are all kinds of mixed messages on purpose.

It's not in a creditor's best interest for you to know how to play the game, because if you know how to play the game, then they don't make any money

If you have no credit, little credit or bad credit, a parent, friend or family member (who pays their bills on time and has good credit) can do something to boost your credit score. They can add you to their credit card as an authorized user ... and you will inherit their good credit from that card.

Never get too close to your credit card spending limit
Let's say your credit card company tells you you can have a credit card with a $100 spending limit. That's how much money you can borrow and spend. But ... you actually shouldn't spend that full amount. You shouldn't get even close to your $100 limit. You should spend much less. Just 30% of your spending limit, so $30. If your credit card limit is $1,000, you can spend $300. If you spend more than 30% of your limit, that hurts your credit.
What about asking for a credit limit increase? Can you ask for it? Will that hurt your score?

When you ask for a credit limit increase, Aliche says, the credit card company will either do a "hard inquiry" or a "soft inquiry." A "hard inquiry" is when you give someone permission to "to see all of your grades and then they make a decision whether they want to lend to you." That inquiry can impact your credit score.

Before you ask for an increase, ask your credit card company if it's a hard inquiry. If it is, you need to ask yourself if it's worth the potential credit score hit.


What is not included in my credit score?

The credit bureaus don't take into account your job, your income, how much money you have saved, your marital status or if you have children.

 

[Ordinary Guy]

It really is a game of the less you know, the more the person that you owe can earn from you.

For example, you've probably heard conflicting advice when it comes to your credit, like: You should pay off your credit card in full each month. And then, no, you shouldn't pay off your card in full each month, it's good to leave a little balance. Aliche says there are all kinds of mixed messages on purpose.

It's not in a creditor's best interest for you to know how to play the game, because if you know how to play the game, then they don't make any money

If you have no credit, little credit or bad credit, a parent, friend or family member (who pays their bills on time and has good credit) can do something to boost your credit score. They can add you to their credit card as an authorized user ... and you will inherit their good credit from that card.

Never get too close to your credit card spending limit
Let's say your credit card company tells you you can have a credit card with a $100 spending limit. That's how much money you can borrow and spend. But ... you actually shouldn't spend that full amount. You shouldn't get even close to your $100 limit. You should spend much less. Just 30% of your spending limit, so $30. If your credit card limit is $1,000, you can spend $300. If you spend more than 30% of your limit, that hurts your credit.
What about asking for a credit limit increase? Can you ask for it? Will that hurt your score?

When you ask for a credit limit increase, Aliche says, the credit card company will either do a "hard inquiry" or a "soft inquiry." A "hard inquiry" is when you give someone permission to "to see all of your grades and then they make a decision whether they want to lend to you." That inquiry can impact your credit score.

Before you ask for an increase, ask your credit card company if it's a hard inquiry. If it is, you need to ask yourself if it's worth the potential credit score hit.


What is not included in my credit score?

The credit bureaus don't take into account your job, your income, how much money you have saved, your marital status or if you have children.

yes point of view can always change the message

 

[Markle]

All I’m saying is if before people were paying $100 more I’m ok with giving them a $50 break and raising our costs $50 so everyone pays the same.

It would be great if they let everyone pay $100 less but they’ll never do that right?

Kindly share with us the benefits of rewarding bad behavior and punishing good behavior.

 

[sealybobo]

Kindly share with us the benefits of rewarding bad behavior and punishing good behavior.

Well when you put it that way.

Look at it this way. Can you see the benefits of not punishing poor people or favoring rich people?

It's just not right. You give a poor person a loan and you charge them 20% but you give a rich guy a loan and only charge 10%? Can you see how unfair that is or not?

 

[sealybobo]

Huff-N-Puff as a source.....Yeah, smells about the same.

View attachment 781828

Nice doggy.

The last link was tricks to improve your credit score. Are they wrong? Do you mind them helping poor people improve their credit score?

Here is another good Huffpo

As Economy Reopens, 1 In 5 Americans Don't Have A Credit Score

Top American banks like Wells Fargo and J.P. Morgan Chase are planning to send out credit cards to those without scores.

www.wbur.org

It's more than a year old. Do your sources even discuss this? Probably not. If they do they're lying about what Biden just did.

Top American banks like Wells Fargo and J.P. Morgan Chase are planning to send out credit cards to those without scores.

Here & Now's Robin Young speaks with Jill Schlesinger, CBS Business News Analyst and host of "Jill On Money," about the importance of a credit score.

I'm sure you disagree with the banks on sending these credit cards out but it's important these people start building their credit. Otherwise they'll pay more for a home mortgage than you and I'm sure you don't want that right? If you pay 3% interest so should they right? And they should have the ability to get to your score, even if you make or have a lot more money, right?

Because these credit companies aren't supposed to know that much about you. Do they? Do you want them to?

You wouldn't even know to ask these questions because you don't listen to NPR. You're brainwashed by right wing radio my friend.

 

[Toddsterpatriot]

Well when you put it that way.

Look at it this way. Can you see the benefits of not punishing poor people or favoring rich people?

It's just not right. You give a poor person a loan and you charge them 20% but you give a rich guy a loan and only charge 10%? Can you see how unfair that is or not?

If the poor people default at a much higher rate than the rich people, the different rates are justified.

 

[Markle]

IDK but a lot happened after he left office. For example. Bush deregulated the banks. Said they didn't have to keep as much $ in the reserves in case of an emergency. Because his economy was flailing and you couldn't pretend it was good any more. The value of the dollar was so low. You even spun that. Said foreigners will come spend their money here if the dollar is low. I remember it all.

So anyways, when the Bush Great Recession hit, bankers didn't have enough emergency money in the till. Why? Bush Deregulations. Remember that?

Cute try!

HUD TO FIGHT DISCRIMINATION, BOOST MINORITY HOMEOWNERSHIP AND WORK WITH URBAN LEAGUE TO FURTHER GOALS
https://archives.hud.gov/news/1997/pr97-135.cfm

###

New York Times - 1999
Fannie Mae Eases Credit To Aid Mortgage Lending -
http://www.nytimes.com/1999/09/30/business/fannie-mae-eases-credit-to-aid-mortgage-lending.html

###

President Bush’s and the Administrations Unheeded Warnings About the Systemic Risk Posed by the GSEs – Fannie and Freddie dating back to 2001
http://swampie.wordpress.com/2008/0...gs-about-the-systemic-risk-posed-by-the-gses/

###

By Elliot Blair Smith,
USA TODAY
Fannie Mae to pay $400 million fine
http://www.bloomberg.com/apps/news?pid=newsarchive&refer=columnist_hassett&sid=aSKSoiNbnQY0

Franklin Raines was Director of the Office of Management and Budget under Clinton and returned to Fannie Mae as its CEO in 1999. Raines is not a “chief” economic adviser for President Barack Hussein Obama but has advised the administration on mortgage and housing matters. Obama had hired another former Fannie CEO, Jim Johnson as a member of Obama’s V.P. search committee and who was forced to quit under fire.


How the Democrats Created the Financial Crisis -

How the Democrats Created the Financial Crisis

Senior Fellow Kevin A. Hassett The financial crisis of the past year has provided a number of surprising twists and turns, and from Bear Stearns Cos. to American International Group Inc., ambiguity has been a big part of the story. Why did Bear Stearns fail, and how does that relate to AIG? It...

www.aei.org

###

Democrats in their own words covering up the Fannie Mae, Freddie Mac


###

Timeline shows Bush, McCain warning Democrats of Financial Crisis


###

From the New York Times
New Agency Proposed to Oversee Freddie Mac and Fannie Mae
By STEPHEN LABATON
Published: September 11, 2003 WASHINGTON,

Sept. 10— 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.

The plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac -- which together have issued more than $1.5 trillion in outstanding debt -- is broken. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates.

Read more:

New Agency Proposed to Oversee Freddie Mac and Fannie Mae (Published 2003)

Bush administration proposes new agency be created within Treasury Department to assume supervision of Fannie Mae and Freddie Mac, House Financial Services Committee hearing; new agency would have authority, which now rests with Congress, to set one of two capital-reserve requirements for...

www.nytimes.com

###

From USNews and World Report
Barney Frank's Fannie and Freddie Muddle
By Sam Dealey
September 10, 2008

[…]

So five years ago, there was one of those rare moments in Washington when the branches and personalities of government—in this case, the Bush administration—are less interested in protecting or expanding their turf than in fixing a looming catastrophe. What was Frank's response to the proposal?

''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''

[…]

Barney Frank's Fannie and Freddie Muddle​

The Financial Services chairman has a rather curious recollection of recent events.
By Sam Dealey
Sept. 10, 2008, at 10:20 a.m.
http://www.usnews.com/opinion/blogs/sam-dealey/2008/09/10/barney-franks-fannie-and-freddie-muddle

###

Wall Street Journal Barney’s Rubble – September 17, 2008
http://online.wsj.com/news/articles/SB122161010874845645

###

Barney Frank in 2005: What Housing Bubble?


###

Democrats Were Wrong on Fannie Mae and Freddie Mac
The White House called for tighter regulation 17 times.

https://www.usnews.com/opinion/blogs/barone/2008/10/06/democrats-were-wrong-on-fannie-mae-and-freddie-mac

###

 

[sealybobo]

Cute try!

HUD TO FIGHT DISCRIMINATION, BOOST MINORITY HOMEOWNERSHIP AND WORK WITH URBAN LEAGUE TO FURTHER GOALS
https://archives.hud.gov/news/1997/pr97-135.cfm

###

New York Times - 1999
Fannie Mae Eases Credit To Aid Mortgage Lending -
http://www.nytimes.com/1999/09/30/business/fannie-mae-eases-credit-to-aid-mortgage-lending.html

###

President Bush’s and the Administrations Unheeded Warnings About the Systemic Risk Posed by the GSEs – Fannie and Freddie dating back to 2001
http://swampie.wordpress.com/2008/0...gs-about-the-systemic-risk-posed-by-the-gses/

###

By Elliot Blair Smith,
USA TODAY
Fannie Mae to pay $400 million fine
http://www.bloomberg.com/apps/news?pid=newsarchive&refer=columnist_hassett&sid=aSKSoiNbnQY0

Franklin Raines was Director of the Office of Management and Budget under Clinton and returned to Fannie Mae as its CEO in 1999. Raines is not a “chief” economic adviser for President Barack Hussein Obama but has advised the administration on mortgage and housing matters. Obama had hired another former Fannie CEO, Jim Johnson as a member of Obama’s V.P. search committee and who was forced to quit under fire.

Bloomberg News -
How the Democrats Created the Financial Crisis -

Bloomberg Politics - Bloomberg

Bloomberg delivers business and markets news, data, analysis, and video to the world, featuring stories from Businessweek and Bloomberg News on everything pertaining to politics

www.bloomberg.com

###

Democrats in their own words covering up the Fannie Mae, Freddie Mac


###

Timeline shows Bush, McCain warning Democrats of Financial Crisis


###

From the New York Times
New Agency Proposed to Oversee Freddie Mac and Fannie Mae
By STEPHEN LABATON
Published: September 11, 2003 WASHINGTON,

Sept. 10— 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.

The plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac -- which together have issued more than $1.5 trillion in outstanding debt -- is broken. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates.

Read more:

New Agency Proposed to Oversee Freddie Mac and Fannie Mae (Published 2003)

Bush administration proposes new agency be created within Treasury Department to assume supervision of Fannie Mae and Freddie Mac, House Financial Services Committee hearing; new agency would have authority, which now rests with Congress, to set one of two capital-reserve requirements for...

www.nytimes.com

###

From USNews and World Report
Barney Frank's Fannie and Freddie Muddle
By Sam Dealey
September 10, 2008

[…]

So five years ago, there was one of those rare moments in Washington when the branches and personalities of government—in this case, the Bush administration—are less interested in protecting or expanding their turf than in fixing a looming catastrophe. What was Frank's response to the proposal?

''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''

[…]

Barney Frank's Fannie and Freddie Muddle​

The Financial Services chairman has a rather curious recollection of recent events.
By Sam Dealey
Sept. 10, 2008, at 10:20 a.m.
http://www.usnews.com/opinion/blogs/sam-dealey/2008/09/10/barney-franks-fannie-and-freddie-muddle

###

Wall Street Journal Barney’s Rubble – September 17, 2008
http://online.wsj.com/news/articles/SB122161010874845645

###

Barney Frank in 2005: What Housing Bubble?


###

Democrats Were Wrong on Fannie Mae and Freddie Mac
The White House called for tighter regulation 17 times.

https://www.usnews.com/opinion/blogs/barone/2008/10/06/democrats-were-wrong-on-fannie-mae-and-freddie-mac

###

I really set you off. I clicked on how the Democrats created the mortgage crisis and it didn't take me to that story. So one strike you are out.

I know your bullshit story.

Did you mention how to spark the economy and lending, Bush eased how much banks kept in reserves in case of an emergency? If he was sincere, it was risky and didn't work. He still took us into a great recession.

So if Bush knew, he shouldn't have deregulated the banks. He would have known they'll need that money in reserves.

So, uh, WRONG.

 

[Dragonlady]

First I will note that F&F should have been crushed long ago.

Second I will note that programs like this will only help the finances of all home owners. Take a large segment of the market out of the market and what happens? The prices of houses collapse.

Now, I also support that but I doubt many others do. For most a small bump in their payment will be preferred over the value of their home dropping.

Excellent point on keeping values up, especially in a market where interest rates are rising. Since qualifying for a mortgage is based on your DTI, every time interest rates increase, monthly mortgage payments are going up and fewer people qualify for a mortgage.

I did find something fairly startling in my reading on the increases in the fees, and that is that there is a special class of borrower with a DTI of over 40%. YIKES!!!!!

When I was a bank manager, the highest allowable debt service ratios were:

1. Maximum of 25% of gross (pretax) income for mortgage payment - PIT. Could go to 33% if the applicant had no other debts.

2. Maximum of 37% of gross income for all monthly debt repayment.

Seeing that they’re lending to people with a 40% DTI makes me go yikes because my experience was that anyone’s at 37% was really high risk.

Add 15% withholding to that and over 55% of gross income is gone before we talk about transportation, food or clothing or medical. And since the DTI does not include utilities, which are not debts, the whole thing gets scarier the more I think about it

 

[Dragonlady]

Cute try!

HUD TO FIGHT DISCRIMINATION, BOOST MINORITY HOMEOWNERSHIP AND WORK WITH URBAN LEAGUE TO FURTHER GOALS
https://archives.hud.gov/news/1997/pr97-135.cfm

###

New York Times - 1999
Fannie Mae Eases Credit To Aid Mortgage Lending -
http://www.nytimes.com/1999/09/30/business/fannie-mae-eases-credit-to-aid-mortgage-lending.html

###

President Bush’s and the Administrations Unheeded Warnings About the Systemic Risk Posed by the GSEs – Fannie and Freddie dating back to 2001
http://swampie.wordpress.com/2008/0...gs-about-the-systemic-risk-posed-by-the-gses/

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By Elliot Blair Smith,
USA TODAY
Fannie Mae to pay $400 million fine
http://www.bloomberg.com/apps/news?pid=newsarchive&refer=columnist_hassett&sid=aSKSoiNbnQY0

Franklin Raines was Director of the Office of Management and Budget under Clinton and returned to Fannie Mae as its CEO in 1999. Raines is not a “chief” economic adviser for President Barack Hussein Obama but has advised the administration on mortgage and housing matters. Obama had hired another former Fannie CEO, Jim Johnson as a member of Obama’s V.P. search committee and who was forced to quit under fire.

Bloomberg News -
How the Democrats Created the Financial Crisis -

Bloomberg Politics - Bloomberg

Bloomberg delivers business and markets news, data, analysis, and video to the world, featuring stories from Businessweek and Bloomberg News on everything pertaining to politics

www.bloomberg.com

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Democrats in their own words covering up the Fannie Mae, Freddie Mac


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Timeline shows Bush, McCain warning Democrats of Financial Crisis


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From the New York Times
New Agency Proposed to Oversee Freddie Mac and Fannie Mae
By STEPHEN LABATON
Published: September 11, 2003 WASHINGTON,

Sept. 10— 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.

The plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac -- which together have issued more than $1.5 trillion in outstanding debt -- is broken. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates.

Read more:

New Agency Proposed to Oversee Freddie Mac and Fannie Mae (Published 2003)

Bush administration proposes new agency be created within Treasury Department to assume supervision of Fannie Mae and Freddie Mac, House Financial Services Committee hearing; new agency would have authority, which now rests with Congress, to set one of two capital-reserve requirements for...

www.nytimes.com

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From USNews and World Report
Barney Frank's Fannie and Freddie Muddle
By Sam Dealey
September 10, 2008

[…]

So five years ago, there was one of those rare moments in Washington when the branches and personalities of government—in this case, the Bush administration—are less interested in protecting or expanding their turf than in fixing a looming catastrophe. What was Frank's response to the proposal?

''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''

[…]

Barney Frank's Fannie and Freddie Muddle​

The Financial Services chairman has a rather curious recollection of recent events.
By Sam Dealey
Sept. 10, 2008, at 10:20 a.m.
http://www.usnews.com/opinion/blogs/sam-dealey/2008/09/10/barney-franks-fannie-and-freddie-muddle

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Wall Street Journal Barney’s Rubble – September 17, 2008
http://online.wsj.com/news/articles/SB122161010874845645

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Barney Frank in 2005: What Housing Bubble?


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Democrats Were Wrong on Fannie Mae and Freddie Mac
The White House called for tighter regulation 17 times.

https://www.usnews.com/opinion/blogs/barone/2008/10/06/democrats-were-wrong-on-fannie-mae-and-freddie-mac

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Given the amount of legislation passed around mortgage lending in the wake of the 2008, how are any news articles from 15 and 20 years ago applicable to anything that is happening today?

 

[Markle]

I really set you off. I clicked on how the Democrats created the mortgage crisis and it didn't take me to that story. So one strike you are out.

I know your bullshit story.

Did you mention how to spark the economy and lending, Bush eased how much banks kept in reserves in case of an emergency? If he was sincere, it was risky and didn't work. He still took us into a great recession.

So if Bush knew, he shouldn't have deregulated the banks. He would have known they'll need that money in reserves.

So, uh, WRONG.

Yep, you're right, one of the links no longer went to the correct site.

Here's the new link to the same article. Thank you for your concern.

How the Democrats Created the Financial Crisis

Senior Fellow Kevin A. Hassett The financial crisis of the past year has provided a number of surprising twists and turns, and from Bear Stearns Cos. to American International Group Inc., ambiguity has been a big part of the story. Why did Bear Stearns fail, and how does that relate to AIG? It...

www.aei.org

 

[Markle]

Given the amount of legislation passed around mortgage lending in the wake of the 2008, how are any news articles from 15 and 20 years ago applicable to anything that is happening today?

My good friend, sealybobo, made a statement that was not true. I simply corrected him as I have done with you many times.

What does it have to do with today?

Quite simple!