Zone1 Tax the Rich! Make them Pay their Fair Share!
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JonKoch
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Then your brokerage simply got caught up with the BANKSTERS created PLS mortgage meltdown
Private Label Securitization
Key Aspects of the PLS Meltdown:
- Rapid Expansion and Decline: The market for non-government-backed PLS dropped from roughly $718 billion in 2007 to just $59 billion in 2008, essentially shutting down private securitization.
- Risky Products: The crisis was fueled by reckless lending, including low-documentation loans, Option ARMs with teaser rates, and subprime mortgages offered to borrowers with poor credit.
- Impact on Defaults: Defaults extended far beyond subprime loans, affecting "higher quality" Alt-A mortgages as interest rates reset and home prices plummeted.
- Systemic Failure: Investment banks, credit rating agencies, and investors all played a role in fueling the demand for these risky products
If you were in the business, maybe you would be credible.
To me, you want to seem expert. But your daily cut and pastes show how little you actually know.
A problem you have is you do not understand that market.
Do you know for example how many times Bush went to Congress, warning them what was going to happen, and Democrats turned a cold face to him. They let it happen.
Congress had the authority to change rules and they refused Bush's requests.
What do you know about VA loans. They are loans to Vets with super easy terms. At least for decades they were. Don't you believe that nothing down loans would be bad for the market? VA loans where the buyer got easy credit lasted for decades and did not fail the market.
JonKoch
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You mean Dubya went to his REPUBLICAN CONGRESS 17 TIMES, and they refused to "reform" F/F? Weird he could get 2 UNFUNDED WARS,. 2 UNFUNDED TAX CUTS, UNFUNDED MEDICARE PRIVATIZATION, BUT COULDN'T GET THE GOP TO REFORM GSE'S?
You meant he 'warned' GOP Congress 17 times on GSE reforms, but blocked the only bill to get out of the GOP House with bipartisan support?
Bush talked about reform. He talked and he talked. And then he stopped reform. (read that as many times as necessary. Bush stopped reform). And then he stopped it again
Testimony from W's Treasury Secretary John Snow to the REPUBLICAN CONGRESS concerning the 'regulation of the GSE's SEPT 2003
Mr. (BARNEY) Frank: ...Are we in a crisis now with these entities?
Secretary Snow. No, that is a fair characterization, Congressman Frank, of our position. We are not putting this proposal before you because of some concern over some imminent danger to the financial system for housing; far from it.
October 26, 2005
STATEMENT 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"
June 17, 2004
(CNN/Money) - 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
BUT NO, THOUGH BUSH CRUSHED F/F (AS REGULATOR), THE GSE'S DIDN'T CAUSE THE BUSH SUBPRIME CRISIS
Private sector loans, not Fannie or Freddie, triggered crisis
AGAIN, MY OLD FORUM
JonKoch
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- High Concentration: At the height of the housing bubble (2006–2007), low-doc loans accounted for approximately 40% of newly issued non-prime mortgages, with some estimates suggesting that within specific subprime categories, this exceeded 50%.
- "Liar's Loans": The industry term for these loans, as they did not require documentation of a borrower's income or assets, were often used for "stated income" loans.
- High-Risk Characteristics: Among Alt-A securities, 80% of loans issued in 2006 had limited or no documentation.
- Impact: By early 2009, the delinquency rate for subprime loans reached 39%
JonKoch
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Bush Mortgage Bubble include (but not limited to)
Wanting 5.5 million more minority homeowners
Tells congress there is nothing wrong with GSEs
Pledging to use federal policy to increase home ownership
Routinely taking credit for the housing market
Forcing GSEs to buy more low income home loans by raising their Housing Goals
Lowering Investment banks capital requirements, Net Capital rule
Reversing the Clinton rule that restricted GSEs purchases of subprime loans
Lowering down payment requirements to 0%
Forcing GSEs to spend an additional $440 billion in the secondary markets
Giving away 40,000 free down payments
PREEMPTING ALL STATE LAWS AGAINST PREDATORY LENDING
But the biggest policy was regulators not enforcing lending standards.
JonKoch
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Bob Davis, executive vice president of the American Bankers Association, which
lobbies Congress to streamline community reinvestment rules, said “it just isn’t credible” to blame the law CRA for the crisis.
“Institutions that are subject to CRA – that is, banks and savings asociations – were largely not involved in subprime lending,” Davis said. “The bulk of the loans came through a channel that was not subject to CRA.”
T....he Register used that database for its analysis. During the four years covered by our analysis, lenders made 55 million home loans, including 12 million subprime loans.
In its glory days, subprime lending was a lucrative business that paid six-figure salaries to 20-something salespeople and made fortunes for top execcutives. Nowhere were the riches more evident than in Orange County, home to industry giants New Century, Ameriquest, Argent and Fremont.
...But the money spread far beyond Orange County, thanks to Wall Street’s years-long love affair with subprime. In 2005 and 2006, subprime lenders sold about 70 percent of their loans by dollar volume to investors – principally to finance and insurance companies or by packaging the loans in highly rated securities.
Fannie and Freddie, the federally sponsored mortgage buyers, were bit players in this market. Together they bought about 3 percent of all subprime loans issued from 2004 through 2007, most of that in 2007 alone.
In 2007 Wall Street turned its back on subprime. That year, subprime lenders were forced to keep 60 percent of their loans on their own books or on the balance sheets of their affiliates.
That was the last fatal step in a financial high-wire act.
November 16, 2008
Most subprime lenders weren’t subject to federal lending law
Did a 31-year-old law giving poor people a break at the bank accidentally break the bank?A lot of opinion leaders think so. From the editorial pages of The Wall Street Journal to talk shows to the op-ed page of The Register, people are…
www.ocregister.com
True. I wish he was talking to me rather than you.
Bob Davis, executive vice president of the American Bankers Association, which
lobbies Congress to streamline community reinvestment rules, said “it just isn’t credible” to blame the law CRA for the crisis.
“Institutions that are subject to CRA – that is, banks and savings asociations – were largely not involved in subprime lending,” Davis said. “The bulk of the loans came through a channel that was not subject to CRA.”
T....he Register used that database for its analysis. During the four years covered by our analysis, lenders made 55 million home loans, including 12 million subprime loans.
In its glory days, subprime lending was a lucrative business that paid six-figure salaries to 20-something salespeople and made fortunes for top execcutives. Nowhere were the riches more evident than in Orange County, home to industry giants New Century, Ameriquest, Argent and Fremont.
...But the money spread far beyond Orange County, thanks to Wall Street’s years-long love affair with subprime. In 2005 and 2006, subprime lenders sold about 70 percent of their loans by dollar volume to investors – principally to finance and insurance companies or by packaging the loans in highly rated securities.
Fannie and Freddie, the federally sponsored mortgage buyers, were bit players in this market. Together they bought about 3 percent of all subprime loans issued from 2004 through 2007, most of that in 2007 alone.
In 2007 Wall Street turned its back on subprime. That year, subprime lenders were forced to keep 60 percent of their loans on their own books or on the balance sheets of their affiliates.
That was the last fatal step in a financial high-wire act.
November 16, 2008
Most subprime lenders weren’t subject to federal lending law
Did a 31-year-old law giving poor people a break at the bank accidentally break the bank?A lot of opinion leaders think so. From the editorial pages of The Wall Street Journal to talk shows to the op-ed page of The Register, people are…
President George W. Bush on Reasons for the Housing Crisis
On September 24, 2008, President George W. Bush discussed the 2008 Financial Crisis and specifically talked about the housing and mortgage markets.
www.c-span.org
Toddsterpatriot
Diamond Member
Toddsterpatriot
Diamond Member
JonKoch
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Gawd, YES Dubya forced F/F to buy $440 billion of BAD MBS's to meet "his goals".. . Dubya was the regulator of F/F, his party had control of Congress 2001-2007 and he was bragging about his "homeownership society" remember?
Alan Greenspan did a study in 2009 that showed without home owners using their homes as ATM's 2001-2007, the US economy would've been less than 1% growth, lol
If you cut the legs off ALL 50 states ability to regulate predatory lenders (Dubya), force GSE's to buy $440 billion MORE of the bad wall street backed MBS's and CDO'd (Dubya), allow the 5 investment banks to ratchet up their leverage from 12-1 to 35-1+ (Dubya), which flooded the market with cheap money, and pull 2/3rd of white collar criminal division out of the FBI, AFTER the FBI warned "epidemic of mortgage fraud (20023, Dubya)
YEAH, F/F MIGHT BE IN TROUBLE. THE US ECONOMY SHRANK BY OVER $10 TRILLION, LOST MILLIONS OF JOBS AND THE ECONOMY SHRANK BY OVER 4% IN ONE QUARTER
Toddsterpatriot
Diamond Member
And then, with no warning, they magically owned $1.8 trillion in subprime mortgages.
Toddsterpatriot
Diamond Member
“The idea that they were leading this charge is just absurd,” says Guy Cecala,
publisher of Inside Mortgage Finance, an authoritative trade publication. “Fannie and Freddie have always had the tightest underwriting on earth. … They were opposite of subprime.”
The evidence indicates Fannie and Freddie contributed to the mortgage meltdown, but they played a secondary role to Wall Street. Wall Street firms and the mortgage lenders they bankrolled led the growth of the market for subprime loans and other risky mortgages.
FactWatch: Fannie and Freddie were followers, not leaders, in mortgage frenzy
Mortgages financed by Wall Street from 2001 to 2008 were 4½ times more likely to be seriously delinquent than mortgages backed by Fannie and Freddie.
FactWatch: Fannie and Freddie were followers, not leaders, in mortgage frenzy – Center for Public Integrity
Ask many Americans who’s to blame for the nation’s economic mess, and two names come to mind: Fannie and Freddie. They see Fannie Mae and Freddie Mac as the villains of the financial crisis. GOP.gov, the official website for Republicans in the House of Representatives, says flatly: “Fannie Mae...publicintegrity.org
Mortgages financed by Wall Street from 2001 to 2008 were 4½ times more likely to be seriously delinquent than mortgages backed by Fannie and Freddie.
Well duh, Fannie and Freddie still bought 44%-50% good mortgages during that period.
JonKoch
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Wow Dubya went to the GOP CONTROLLED CONGRESS and said he warned HIS GOP Congress 17 times about the GSE program HE WAS ALREADY IN CHARGE OF?
President George W. Bush on Reasons for the Housing Crisis
On September 24, 2008, President George W. Bush discussed the 2008 Financial Crisis and specifically talked about the housing and mortgage markets.
WHAT DID DUBYA'S GROUP SAY IN MARCH 2008?
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
DUBYA FOUGHT ALL 50 STATE AG'S IN 2003, INVOKING A CIVIL WAR ERA RULE SAYING FEDS RULE ON "PREDATORY" LENDERS!
"The sub-prime loans would not have been made if there were not buyers and sellers for them on secondary markets via MBS's.
The MBS's would not have existed if regulators had taken a look at them, realized pretty much no one knew what the hell they were, and acted accordingly.
There would not have been buyers for the MBS's if the ratings agencies had given them appropriate ratings, such as S&P's CCC, about where they should have been.
Those selling the MBS's would not have been able to move risk off their books if someone not been willing to sell them CDS's."
WHO WAS IN CHARGE IN THIS PERIOD? WHO HAD THE SEC, FBI, GSE'S, ETC AS PART OF THEIR EXECUTIVE BRANCH OVERSIGHT?
"The FBI correctly identified the epidemic of mortgage control fraud at such an early point that the financial crisis could have been averted had the Bush administration acted with even minimal competence." William K. Black Sr. regulator during S&L debacle
Dubya was warned by the FBI of an "epidemic" of mortgage fraud in 2004. He gave them less resources.
Financial Crimes Report to the Public 2005
FBI ? Financial Crimes Report 2005
The Bush Rubber Stamp Congress ignored the obvious and extremely detailed and well reported crime spree by the FBI.
THE BUSH ADMINISTRATION and GOP CONGRESS stripped the White Collar Crime divisions of money and manpower.
"Those selling the CDS's would not have been able to sell them if they had been required by regulators to maintain standard insurance reserves."
2004 Dubya allowed the leverage rules to go from 12-1 to 35-1 which flooded the market with cheap money!
The SEC Rule That Broke Wall Street
The SEC Rule That Broke Wall Street
Toddsterpatriot
Diamond Member
Link?
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