Bush added millions of loans to minorities who couldn't afford those loans and had their downpayments waived to make it even easier for them to get the loans which should not have been given. To make the situation worse, he gauranteed those loan, in what would become toxic loans, by way of the GSEs, Fannie Mae and Freddie Mac. It wss then that greedy lenders began furiously writing mortages they knew were probably no good because they knew they could either sell them while they were good or write them off to the government if they were bad.
What was needed was additional oversight of the GSEs and that never came. To Bush's credit, he did implore Congress to deliver oversight, but the Republican led Congress never did get him a bill to sign. Bush should
never have passed the Dream Act unless it had the oversight that was needed, in it. Though Democrats were on the wrong side of that issue, they weren't in charge. Republicans were and Repblicans failed to deliver. By the time Democrats took over in 2007, it was too late, the damage was done. Though by then, the writing was on the wall, which alerted Democrats to change their position and draft oversight. Barney Frank tried in 2007; and though his bill passed in the House, it died in the Democrat led Senate. Pelosi would ultimately get a bill signed by Bush, but that was
6 years after Bush first asked Congress for oversight. By then, it was way to late.
HERE are the FACTS regarding Fannie/Freddie! FACTS OK!@!
GWB's administration was LAUGHED AT BY
Democrats Frank and Dodd after 17 times trying to get Fannie/Freddie fixed!
"Over the past six years, the President and his Administration have not only warned of the systemic consequences of failure to reform GSEs but also put forward thoughtful plans to reduce the risk that either Fannie Mae or Freddie Mac would encounter such difficulties.
President Bush publicly called for GSE reform at least 17 times in 2008 alone before Congress acted.
Unfortunately, these warnings went unheeded, as the President's repeated attempts to reform the supervision of these entities were thwarted by the legislative maneuvering of those who emphatically denied there were problems.
Setting the Record Straight: The Three Most Egregious Claims In The New York Times Article On The Housing Crisis
Many prominent Democrats, including House Finance Chairman Barney Frank, opposed any legislation correcting the risks posed by GSEs.
* House Financial Services Committee Chairman Barney Frank (D-MA) criticized
the President's warning saying:
"these two entities - Fannie Mae and Freddie Mac - are not facing any kind of financial crisis .The more people exaggerate these problems,
the more pressure there is on these companies, the less we will see in terms of affordable housing."..
(Stephen Labaton, "New Agency Proposed To Oversee Freddie Mac And Fannie Mae," New York Times, 9/11/03)
* Senate Committee on Banking, Housing and Urban Affairs Chairman Christopher Dodd also ignored the President's warnings and
called on him to "immediately reconsider his ill-advised" position. (Eric Dash, "Fannie Mae's Offer To Help Ease Credit Squeeze Is Rejected, As Critics Complain Of Opportunism," New York Times, 8/11/07)
Barney Frank's Fannie and Freddie Muddle - Sam Dealey (usnews.com)
