O....M....G....DJIA Hits 50,000 Another huge win for Trump

[JonKoch]

You claim but do not prove that Bush cheered on evil bankers to do what they had already been doing for years as a result of the banking deregulations under Clinton.

BZZ, WRONG!!


The Office of Federal Housing Enterprise Oversight (OFHEO) was an agency within the Department of Housing and Urban Development of the United States of America. It was charged with ensuring the capital adequacy and financial safety and soundness of two government sponsored enterprises2;the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). It was established by the Federal Housing Enterprises Financial Safety and Soundness Act of 1992.


The United States Department of Housing and Urban Development (HUD) is a Cabinet department in the Executive branch




July 8, 2004

HUD DATA SHOWS FANNIE MAE AND FREDDIE MAC HAVE TRAILED THE INDUSTRY IN PROVIDING AFFORDABLE HOUSING IN 44 STATES

New regulations will increase mortgage financing for homebuyers and underserved communities

HUD Archives: HUD DATA SHOWS FANNIE MAE AND FREDDIE MAC HAVE TRAILED THE INDUSTRY IN PROVIDING AFFORDABLE HOUSING IN 44 STATES


June 17, 2004


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.


Home builders fight Bush's low-income housing - Jun. 17, 2004

2003-2004? OH THE SAME THING BUSH ADMINN SAID, BEFORE DUBYA CREATED THE SUBPRIME BUBBLE:

The "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," the President's Working Group on Financial Markets OCT 2008


BUSH:

ATEMENT OF ADMINISTRATION POLICY

The Administration strongly believes that the housing GSEs should be focused on their core housing mission, particularly with respect to low-income Americans and first-time homebuyers. Instead, provisions of H.R. 1461 that expand mortgage purchasing authority would lessen the housing GSEs' commitment to low-income homebuyers.

George W. Bush: Statement of Administration Policy: H.R. 1461 - Federal Housing Finance Reform Act of 2005

Yes, he said he was against it because it "would lessen the housing GSEs' commitment to low-income homebuyers".


THE ONLY REFORM FOR FANNIE/FREDDIE OUT OF EITHER HOUSE, DUBYA OPPOSED IT!

 

[markef]

Nah, you need to go back to school Cupcake

The Gov't didn't force BANKS (mainly mortgage companies actually did like 90% of the subprime then, NOT required to use CRA or other type). DUBYA however, FORCED F/F to buy $440 BILLION IN MBS'S to meet HIS new housing goals, removing Clinton's 2000 RULE that didn't allow subprime mortgages to count towards the goals. SEE THE DIFFERENCE? Probably not

Obama sued banks in 2012 long after the initial 2008 collapse for not making risky home loans to black borrowers. You cannot make this stuff up. This article is very long, very detailed, and proves beyond doubt what really happed that brought down Wall Street in 2008:

https://dailycaller.com/2012/09/03/...subprime-loans-to-chicagos-african-americans/

With landmark lawsuit, Barack Obama pushed banks to give subprime loans to Chicago’s African-Americans

Neil MunroWhite House Correspondent

September 03, 20121:26 AM ET

Font Size:

President Barack Obama was a pioneering contributor to the national subprime real estate bubble, and roughly half of the 186 African-American clients in his landmark 1995 mortgage discrimination lawsuit against Citibank have since gone bankrupt or received foreclosure notices.

As few as 19 of those 186 clients still own homes with clean credit ratings, following a decade in which Obama and other progressives pushed banks to provide mortgages to poor African Americans.

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The startling failure rate among Obama’s private sector clients was discovered during The Daily Caller’s review of previously unpublished court information from the lawsuit that a young Obama worked on as an attorney for the lead plaintiff. [RELATED: Learn about the 186 class action plaintiffs]

Since the mortgage bubble burst, some of his former clients are calling for a policy reversal.

“If you see some people don’t make enough money to afford the mortgage, why would you give them a loan?” asked Obama client John Buchanan. “There should be some type of regulation against giving people loans they can’t afford.”

Banks “were too eager to lend to many who didn’t qualify,” said Don Byas, another client who saw banks lurch from caution to bubble-inflating recklessness. [RELATED: Obama’s Citibank plaintiffs hit hard when housing bubble burst]

 

[JonKoch]

And yet Franklin Raines kept over $100 million he made cooking the books at Fannie Mae. I see a huge disparity between what he was not required to do compared to what so many others were required to do. Can we assume that it may have had something to do with the fact that Raines was black and the others were white under the Obama Justice Department?

Git it, YOU want me to do YOUR work for you. Hint


SEE THIS DATE? THEN WHEN THE ACCOUNTING SCANDAL HAPPENED?
On December 21, 2004, Raines accepted what he called "early retirement"

April 19, 2008


Franklin D. Raines, former chief executive of Fannie Mae, and two other top executives are paying a total of nearly $31.4 million over their roles in a 2004 accounting scandal in a settlement that the government announced Friday

Mr. Raines; the former chief financial officer, J. Timothy Howard; and the former controller, Leanne G. Spencer, were accused in a civil lawsuit in December 2006 of manipulating earnings over a six-year period at the company, the largest American financier and guarantor of home mortgages.

Mr. Raines, a prominent Washington figure who was President Bill Clinton’s budget director, has agreed to pay $24.7 million, including a $2 million fine. Mr. Howard is paying $6.4 million and Ms. Spencer $275,000.

Mr. Raines will also give up company stock options valued at $15.6 million.


Fannie and Freddie both had multibillion-dollar accounting scandals that stunned Wall Street and brought record civil fines against them in settlements with the government.

Ofheo had sought fines of around $100 million against the three and restitution totaling more than $115 million in bonus money tied to an improper accounting scheme.

The regulators said an accounting fraud at Fannie Mae included manipulations to reach earnings targets so that Mr. Raines, Mr. Howard, Ms. Spencer and other company executives could pocket hundreds of millions in bonuses from 1998 to 2004.

Fannie Mae paid a record $400 million civil fine in a settlement with Ofheo and the Securities and Exchange Commission. It also agreed to make top-to-bottom changes in its corporate culture, accounting procedures and ways of managing risk.

https://www.nytimes.com/2008/04/19/business/19fannie.html

WHEN WAS DUBYA'S SUBPRIME PONZI SCHEME GOING ON AGAIN?

2004-2007?

 

[JonKoch]

Obama sued banks in 2012 long after the initial 2008 collapse for not making risky home loans to black borrowers. You cannot make this stuff up. This article is very long, very detailed, and proves beyond doubt what really happed that brought down Wall Street in 2008:

https://dailycaller.com/2012/09/03/...subprime-loans-to-chicagos-african-americans/

With landmark lawsuit, Barack Obama pushed banks to give subprime loans to Chicago’s African-Americans

Neil MunroWhite House Correspondent

September 03, 20121:26 AM ET

Font Size:

President Barack Obama was a pioneering contributor to the national subprime real estate bubble, and roughly half of the 186 African-American clients in his landmark 1995 mortgage discrimination lawsuit against Citibank have since gone bankrupt or received foreclosure notices.

As few as 19 of those 186 clients still own homes with clean credit ratings, following a decade in which Obama and other progressives pushed banks to provide mortgages to poor African Americans.

Continue watchingSTEVE MILLOY: Defund National Academy Of Sciencesafter the ad

The video player is currently playing an ad. You can skip the ad in 5 sec with a mouse or keyboard

The startling failure rate among Obama’s private sector clients was discovered during The Daily Caller’s review of previously unpublished court information from the lawsuit that a young Obama worked on as an attorney for the lead plaintiff. [RELATED: Learn about the 186 class action plaintiffs]

Since the mortgage bubble burst, some of his former clients are calling for a policy reversal.

“If you see some people don’t make enough money to afford the mortgage, why would you give them a loan?” asked Obama client John Buchanan. “There should be some type of regulation against giving people loans they can’t afford.”

Banks “were too eager to lend to many who didn’t qualify,” said Don Byas, another client who saw banks lurch from caution to bubble-inflating recklessness. [RELATED: Obama’s Citibank plaintiffs hit hard when housing bubble burst]

GROW A FUCKIN BRAIN

"1995 mortgage discrimination lawsuit against Citibank"

LMAOROG


READ YOUR GAWDAM LINKS FIRST IDIOT

 

[markef]

"Banking experts were misled by the government's promise that Fannie and Freddie would back risky loans"


LMAOROG. Gawd right wingers are stoopid

Look at the numbers. While the credit bubble was peaking from 2003 to 2006, the amount of loans originated by Fannie and Freddie dropped from $2.7 trillion to $1 trillion.


Meanwhile, in the private sector, the amount of subprime loans originated jumped to $600 billion from $335 billion and Alt-A loans hit $400 billion from $85 billion in 2003. Fannie and Freddie, which wouldn’t accept crazy floating rate loans, which required income verification and minimum down payments, were left out of the insanity.


There’s a must-read study by staff members of the Federal Reserve Bank of New York analyzing the roots of the subprime crisis that came out in March. I don’t think it got much attention then as the conclusions seemed uncontroversial at the time. But now that Washington politicians are trying to rewrite history, it should be mandatory reading for every American interested in knowing how we got here.

The study identifies five causes of the subprime meltdown:

-Convoluted loan products that consumers didn’t understand.

-Credit ratings that didn’t do a good job highlighting the risks contained in subprime-backed securities.

-Lack of incentives for institutional investors to do their own research (they just relied on the credit ratings).

-Predatory lending and borrowing (which I think means fraud perpetrated by borrowers).


-Significant errors in the models used by credit rating agencies to assess subprime-backed securities.


You’ll note in the Fed’s five causes that there’s some culpability for lenders, borrowers, investors and credit raters. There’s no blame for Freddie Mac or Fannie Mae which had little or nothing to do with the entire situation.
It’s certainly fair to criticize Fannie and Freddie over real issues that contributed to their downfall.

https://archive.ph/ck3zM#selection-1507.0-1507.105

Bush tried to initiate reforms to Fannie Mae and Freddie Mac but Congress refused, with Barney Frank playing a key role in that obstruction of Bush's attempted reforms.

Federal takeover of Fannie Mae and Freddie Mac - Wikipedia

en.wikipedia.org

Previous attempts at GSE reform​

In 2003, the Bush Administration sought to create a new agency, replacing the Office of Federal Housing Enterprise Oversight, to oversee Fannie Mae and Freddie Mac. In 1992, in the wake of the savings and loan crisis, and over concern that similar lending problems would develop, the Office of Federal Housing Enterprise Oversight was created as part of the Department of Housing and Urban Development.

While Senate and House leaders voiced their intention to bring about the needed legislation, no reform bills materialized. A Senate reform bill introduced by Senator Jon Corzine (D-NJ) (S.1656) never made it out of the 21-member (10 D, 11 R) Senate Banking, Housing, and Urban Affairs Committee.

At the time, some members of the 108th Congress expressed faith in the solvency of Fannie Mae and Freddie Mac. Congressman Barney Frank (D-MA), for example, described them as "not facing any kind of financial crisis".

 

[bdtex]

This is a day for massive celebration.

 

[JonKoch]

Bush tried to initiate reforms to Fannie Mae and Freddie Mac but Congress refused, with Barney Frank playing a key role in that obstruction of Bush's attempted reforms.

Federal takeover of Fannie Mae and Freddie Mac - Wikipedia

en.wikipedia.org

Previous attempts at GSE reform​

In 2003, the Bush Administration sought to create a new agency, replacing the Office of Federal Housing Enterprise Oversight, to oversee Fannie Mae and Freddie Mac. In 1992, in the wake of the savings and loan crisis, and over concern that similar lending problems would develop, the Office of Federal Housing Enterprise Oversight was created as part of the Department of Housing and Urban Development.

While Senate and House leaders voiced their intention to bring about the needed legislation, no reform bills materialized. A Senate reform bill introduced by Senator Jon Corzine (D-NJ) (S.1656) never made it out of the 21-member (10 D, 11 R) Senate Banking, Housing, and Urban Affairs Committee.

At the time, some members of the 108th Congress expressed faith in the solvency of Fannie Mae and Freddie Mac. Congressman Barney Frank (D-MA), for example, described them as "not facing any kind of financial crisis".

Gawd you must be brain dead, do you not read ANYTHING?

2003 Dubya started his "17 times I tried to reform F/F'" BS. That John McCain tried to claim the same when he ran in 2008, after the economy collapsed, BUT THE ONLY REFORM IN CONGRESS TO MAKE IT


ONCE AGAIN CUPCAKE


BUSH:

SATEMENT OF ADMINISTRATION POLICY

The Administration strongly believes that the housing GSEs should be focused on their core housing mission, particularly with respect to low-income Americans and first-time homebuyers. Instead, provisions of H.R. 1461 that expand mortgage purchasing authority would lessen the housing GSEs' commitment to low-income homebuyers.


George W. Bush: Statement of Administration Policy: H.R. 1461 - Federal Housing Finance Reform Act of 2005

Yes, he said he was against it because it "would lessen the housing GSEs' commitment to low-income homebuyers".


THE ONLY REFORM FOR FANNIE/FREDDIE OUT OF EITHER HOUSE, DUBYA OPPOSED IT!


BUT ONCE MORE, FANNIE AND FREDDIE DIDN'T CAUSE IT, BUT TRAILED THE PRIVATE SECTOR PLM 2004-2007

 

[JonKoch]

Bush tried to initiate reforms to Fannie Mae and Freddie Mac but Congress refused, with Barney Frank playing a key role in that obstruction of Bush's attempted reforms.

Federal takeover of Fannie Mae and Freddie Mac - Wikipedia

en.wikipedia.org

Previous attempts at GSE reform​

In 2003, the Bush Administration sought to create a new agency, replacing the Office of Federal Housing Enterprise Oversight, to oversee Fannie Mae and Freddie Mac. In 1992, in the wake of the savings and loan crisis, and over concern that similar lending problems would develop, the Office of Federal Housing Enterprise Oversight was created as part of the Department of Housing and Urban Development.

While Senate and House leaders voiced their intention to bring about the needed legislation, no reform bills materialized. A Senate reform bill introduced by Senator Jon Corzine (D-NJ) (S.1656) never made it out of the 21-member (10 D, 11 R) Senate Banking, Housing, and Urban Affairs Committee.

At the time, some members of the 108th Congress expressed faith in the solvency of Fannie Mae and Freddie Mac. Congressman Barney Frank (D-MA), for example, described them as "not facing any kind of financial crisis".

''While Senate and House leaders voiced their intention to bring about the needed legislation, no reform bills materialized. A Senate reform bill introduced by Senator Jon Corzine (D-NJ) (S.1656) never made it out of the 21-member (10 D, 11 R) Senate Banking, Housing, and Urban Affairs Committee.''


WOW SO THE GOP LED SENATE VOTED NOT TO ALLOW "REFORM" OUT OF THE GOP COMMITTEE WHERE IT TAKES SIMPLE MAJORITY TO MOVE FORWARD? AND THAT'S THE DEMOCRATS FAULT WHO SUPPORTED THAT BILL, AND HR1461 IN 2005, WHILE DUBYA, WHO WAS THE ACTUAL REGULATOR OF F/F DID NOTHING? I'm shocked

 

[Slade3200]

Images
Videos
The Clinton administration's policies, particularly the Community Reinvestment Act and the actions of HUD Secretary Andrew Cuomo, significantly contributed to the rise of subprime mortgages and the subsequent financial crisis.

Key​

1. Community Reinvestment Act (CRA): Originally passed in 1977, the CRA was strengthened during the Clinton years. It aimed to encourage banks to lend to low-income and minority communities. Critics argue that this led to relaxed lending standards, as banks sought to meet CRA requirements by issuing loans to higher-risk borrowers, contributing to the subprime mortgage boom.
   
   2
2. Andrew Cuomo's Role: As HUD Secretary from 1997 to 2001, Andrew Cuomo implemented policies that expanded access to homeownership. His initiatives included lowering credit standards and promoting loans to borrowers with poor credit histories. This approach, while aimed at increasing homeownership, also facilitated the growth of subprime lending without adequate oversight.
   
   2
3. Deregulation and Risky Lending: The Clinton administration's policies encouraged a significant increase in subprime lending. By the late 1990s, the subprime loan market had grown substantially, with many loans issued without proper documentation or consideration of borrowers' ability to repay. This lack of regulation allowed lenders to engage in predatory practices, leading to widespread defaults when housing prices fell.
   
   2
4. Impact on the Housing Market: The push for increased homeownership, particularly among low-income families, resulted in a surge of subprime mortgages. When the housing bubble burst, many of these borrowers faced foreclosure, contributing to the financial crisis of 2007-2008. The Financial Crisis Inquiry Commission noted that while government policies aimed to promote affordable housing, they also played a role in the crisis by encouraging risky lending practices.
   
   2
5. 
   
   
   
   
   
   5 Sources

The CRA argument has been studied extensively and doesn’t hold up. The Fed, FDIC, and the Financial Crisis Inquiry Commission all found that CRA-regulated banks were less likely to make high-risk loans than non-bank lenders operating completely outside CRA oversight. Countrywide, Ameriquest, and similar originators — not CRA banks — wrote the bulk of the worst subprime paper.
Cuomo’s HUD policies pushing Fannie to expand affordable housing goals are a legitimate criticism, but those goals were continued and expanded under Bush’s HUD — Bush explicitly championed an “ownership society” and pressured Fannie and Freddie further in the same direction through 2004.
The subprime market exploded primarily because Wall Street created enormous profit incentives to originate volume regardless of quality — lenders got paid to close loans, not to ensure repayment. That demand-side pressure from investment banks dwarfs any regulatory nudge from HUD or CRA.

Most importantly. Busy had 7 years to reverse any of the policies set by Clinton but he didn’t. The crash was decades old problems centered around deregulation. Started by Regan and snowballed from there. It was a bipartisan screw up

 

[Slade3200]

As a community organizer with Bill Ayers' voter fraud organization ACORN Obama lobbied Bill Clinton to destroy credit standards in home mortgage loans to blacks.

This is a discredited conspiracy theory conflating unrelated facts.

 

[JonKoch]

The CRA argument has been studied extensively and doesn’t hold up. The Fed, FDIC, and the Financial Crisis Inquiry Commission all found that CRA-regulated banks were less likely to make high-risk loans than non-bank lenders operating completely outside CRA oversight. Countrywide, Ameriquest, and similar originators — not CRA banks — wrote the bulk of the worst subprime paper.
Cuomo’s HUD policies pushing Fannie to expand affordable housing goals are a legitimate criticism, but those goals were continued and expanded under Bush’s HUD — Bush explicitly championed an “ownership society” and pressured Fannie and Freddie further in the same direction through 2004.
The subprime market exploded primarily because Wall Street created enormous profit incentives to originate volume regardless of quality — lenders got paid to close loans, not to ensure repayment. That demand-side pressure from investment banks dwarfs any regulatory nudge from HUD or CRA.

Most importantly. Busy had 7 years to reverse any of the policies set by Clinton but he didn’t. The crash was decades old problems centered around deregulation. Started by Regan and snowballed from there. It was a bipartisan screw up

''Cuomo’s HUD policies pushing Fannie to expand affordable housing goals are a legitimate criticism, but those goals were continued and expanded under Bush’s HUD''

Clinton stopped it in 2000


In 2000, as HUD revisited its affordable-housing goals, the housing market had shifted. With escalating home prices, subprime loans were more popular. Consumer advocates warned that lenders were trapping borrowers with low "teaser" interest rates and ignoring borrowers' qualifications.


HUD restricted Freddie and Fannie, saying it would not credit them for loans they purchased that had abusively high costs or that were granted without regard to the borrower's ability to repay. Freddie and Fannie adopted policies not to buy some high-cost loans.


That year, Freddie bought $18.6 billion in subprime loans; Fannie did not disclose its number.


In 2001, HUD researchers warned of high foreclosure rates among subprime loans.


"Given the very high concentration of these loans in low-income and African American neighborhoods, the growth in subprime lending and resulting very high levels of foreclosure is a real cause for concern," an agency report said.


But by 2004, when HUD next revised the goals, Freddie and Fannie's purchases of subprime-backed securities had risen tenfold. Foreclosure rates also were rising.


How HUD Mortgage Policy Fed The Crisis
Subprime Loans Labeled 'Affordable'

https://archive.ph/ZhfIA#selection-253.0-257.35

Dubya took a $1 trillion a year mortgage market at THE END OF 2000 AND PUSHED IT TO $4 TRILLION A YEAR BY 2004!




The real surge in the mortgage market began in 2001 (the year of the stock market crash). From 2000 -2004, residential originations the U.S. climbed from about $1trillion to almost $4 trillion.

About 70% of this rise was accounted for by people refinancing their conventional mortgages at lower interest rates

http://www.tobinproject.org/sites/tobinproject.org/files/assets/Fligstein_Catalyst of Disaster_0.pdf