Simple enough to prove you are lying: if the government....FDR....hadn't decided to move into the private mortgage market, and left it up to the banks to whom to give mortgages, would there have been a mortgage meltdown?
FDR? What the hell are you talking about?
Were banks mandated to give mortgages to unqualified applicants, yes or no?
1. Franklin Roosevelt was responsible for the creation of Fannie and Freddie.
"The Federal National Mortgage Association (FNMA), colloquially known as Fannie Mae, was established in 1938 by amendments to the
National Housing Act[5] after the
Great Depression as part of
Franklin Delano Roosevelt's
New Deal. Fannie Mae was established to provide local banks with federal money to finance home mortgages..."
Fannie Mae - Wikipedia the free encyclopedia
Now that I've taught you history of the home mortgage fiasco....answer the question:
Would there have been a mortgage meltdown had the government not meddle in the private home mortgage industry?
Answer: no.
2. Pick up , "
Hidden in Plain Sight: What Really Caused the World's Worst Financial Crisis and Why It Could Happen Again," by
Peter Wallison.
Government programs.
Liberal policies.
" At the center of his narrative are what he calls nontraditional mortgages.
Two decades ago, the major lenders employed
mortgage underwriting requirements for collateral, capacity and credit history – the three Cs. Collateral meant that the home buyer made a down payment, preferably of 20 percent or more of the value of the house, never less than 10 percent. Capacity referred to the maximum share of a borrower's income that could be devoted to mortgage payments and other debt service. Credit history meant that the borrower demonstrated an ability to manage credit responsibly, an ability which has come to be summarized in a credit score.
Nontraditional mortgages are those in which
the lender deliberately waives one or more of the three Cs. Over a very short span of time, beginning in the late 1990s and culminating in 2007, the U.S. housing market came to be dominated by such mortgages.
Government encouraged the growth in nontraditional mortgages. In the decades leading up to the crisis,
government officials produced reports and statements criticizing lenders for sticking to the three Cs. They issued lending quotas to Freddie Mac, Fannie Mae and large commercial banks. To meet those quotas, those lenders had to turn to nontraditional mortgages.
Fannie Mae and Freddie Mac instead reported that their portfolios included only one or two percent of “subprime” loans. Later, Wallison's colleague Ed Pinto found that many of the loans that Freddie and Fannie classified as standard were in fact substandard loans that defaulted at much higher rates than conventional mortgages."
Housing Bubbles Subprime Mortgages and the Financial Crisis Reconsidered - US News
"....
government officials produced reports and statements criticizing lenders for sticking to the three Cs.
They issued lending quotas to Freddie Mac, Fannie Mae and large commercial banks. To meet those quotas, those lenders had to turn to nontraditional mortgages.
Get it now????