Few would dispute the fact that when Fannie Mae collapsed it brought down the entire economic system worldwide. Who was in charge of Fannie Mae at the time? The powerful chairman of the House Banking committee had oversight responsibility for Fannie Mae and he told Americans that "Fannie was doing fine" when it was on the verge of collapse. Strangely enough the entity we have come to know as the "justice dept" has never asked Rep. Barney Frank the important questions and there is yet to be a Congressional hearing on the Fannie Mae collapse.
I'll wait patiently for your response to your right wing crap on F/F....
So the Democrats are the tightwads and the Republicans are the big spenders (especially the Tea Party)? HmmÂ…
Meanwhile (back on Earth) the entire push behind the CRA was to increase home ownership among minorities (who more often had lower credit scores). This extra purchasing power at the lower end boosted all real estate into an overvalued bubble. Bush could have done more to slow this down, but all of his critics would have then labeled him a racist. Sound familiar?
Got it, you'll just double down on the right wing nonsense, lol
Private sector loans, not Fannie or Freddie, triggered crisis
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
Private sector loans, not Fannie or Freddie, triggered crisis | Economics | McClatchy DC
Most subprime lenders weren't subject to federal lending law
Community Reinvestment Act, blamed for home market crash, didn't apply to the banks that did the most lending.
BANKSTER:
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."
Most subprime lenders weren't subject to federal lending law - The Orange County Register
Nobody forced the big five investment banks to do what they did; they were not subject to CRA or other regulations common to depository banks. In fact, they mainly bought and sold loans rather than originate them. They did it because they thought they would make money.
The historical "originate and hold" mortgage model was replaced with the "originate and distribute" model. Incentives were such that you could get paid just to originate and sell the mortgages down the pipeline, passing the risk along. The big investment banks simply connected the investors to the originators, helped by the AAA ratings.
CRA? LOL
Given CEOs' proclivity for government bashing, any lenders being driven to write bad loans by the CRA would have been on CNBC screaming at the top of their lungs.
But that dog that didn't bark.
Examining the big lie: How the facts of the economic crisis stack up
The boom and bust was global. Proponents of the Big Lie ignore the worldwide nature of the housing boom and bust.
A McKinsey Global Institute report noted “from 2000 through 2007, a remarkable run-up in global home prices occurred.” It is highly unlikely that a simultaneous boom and bust everywhere else in the world was caused by one set of factors (ultra-low rates, securitized AAA-rated subprime, derivatives) but had a different set of causes in the United States. Indeed, this might be the biggest obstacle to pushing the false narrative
Nonbank mortgage underwriting exploded from 2001 to 2007, along with the private label securitization market, which eclipsed Fannie and Freddie during the boom.
Private lenders not subject to congressional regulations collapsed lending standards
Examining the big lie: How the facts of the economic crisis stack up | The Big Picture
Right-wingers Want To Erase How George Bush's "Homeowner Society" Helped Cause The Economic Collapse
DUBYA FOUGHT ALL 50 STATE AG'S IN 2003, INVOKING A CIVIL WAR ERA RULE SAYING FEDS RULE ON "PREDATORY" LENDERS!
Dubya was warned by the FBI of an "epidemic" of mortgage fraud in 2004. He gave them less resources. Later in 2004 Dubya allowed the leverage rules to go from 12-1 to 33-1 which flooded the market with cheap money!
Bush drive for home ownership fueled housing bubble
He insisted that Fannie Mae and Freddie Mac meet ambitious new goals for low-income lending.
Concerned that down payments were a barrier, Bush persuaded Congress to spend as much as $200 million a year to help first-time buyers with down payments and closing costs.
And he pushed to allow first-time buyers to qualify for government insured mortgages with no money down
ANYTHING ELSE BUBBA?
