You obviously need to read into the sub-prime meltdown. Fact, most high risk sub-primes were originated by non-bank lenders. Feel free to blame poor people for it. Why change your narrative now?
LOL !!
You want to go down that road with me ? I'm one of the few here that have ACTUALLY " read into " the Sub-Prime Collapse as you hold on to bits and pieces of ignorance and pretend you're a authority on the issue.
As always, with you people, my input into a debate concerning the Sub-Prime Collapse will either leave you much more educated, or will relegate you into the loose association of absolute lunatics who blame it ALL on Bush.
You may read their hilarity in the Partisan section of this forum.
I'll give you a bit of information and lets see if your'e gullible enough to take the bait.
In the Spring and Summer of 1994, Secretary Henry Cisneros met with leaders of major national organizations from the housing industry to solicit their views about establishing a national homeownership partnership.”
- HUD, "Partners in the American Dream", May 1995
“In 1994, at the President’s request, the U.S. Department of Housing and Urban Development (HUD) began work to develop a National Homeownership Strategy with the goal of lifting the overall homeownership rate to 67.5 percent by the end of the year 2000. While the most tangible goal of the National Homeownership Strategy was to raise the overall homeownership rate, in presenting the strategy HUD pointed explicitly to declines in homeownership rates among low-income, young, and minority households as motivation for these efforts.” - U.S. Department of Housing and Urban Development Office of Policy Development and Research website
"At the request of President Clinton, HUD is working with dozens of national leaders in government and the housing industry to implement the National Homeownership Strategy, an unprecedented public-private partnership to increase homeownership to a record-high level over the next 6 years.” - Urban Policy Brief Number 2, August 1995
“Federal institutions, policies, and programs alone cannot meet President Clinton's goal of record-high levels of homeownership within the next 6 years. HUD has forged a nationwide partnership that will draw on the resources and creativity of lenders, builders, real estate professionals, community-based nonprofit organizations, consumer groups, State and local governments and housing finance agencies, and many others in a cooperative, multifaceted campaign to create ownership opportunities” - The National Homeownership Strategy
Action 11: Removing Barriers to Mortgage Financing for Starter Homes
Action 29: Alternative Approaches to Homebuying Transactions
Action 35: Home Mortgage Loan-to-Value Flexibility
Action 36: Subsidies to Reduce Downpayment and Mortgage Costs
Action 44: Flexible Mortgage Underwriting Criteria
Action 45: Public-Private Leveraging for Affordable Home Financing
By 1996, HUD was directing the GSE's to provide at least 42% of their mortgage financing to low-income borrowers and 12% of their portfolios to “special affordable” loans. NOT BUSH'S GREAT RECESSION, CLINTONS GREAT RECESSION....
"This unprecedented public-private partnership is founded on a deeply rooted and almost universally held belief that homeownership provides important advantages that merit continued public support. The National Homeownership Strategy cites four fundamental benefits:” Urban Policy Brief Number 2, August 1995
"Through homeownership, a family...invests in an asset that can grow in value and... generate financial security."
"Homeownership enables people to have greater control and exercise more responsibility over their living environment."
"Homeownership helps stabilize neighborhoods and strengthen communities."
"Homeownership helps generate jobs and stimulate economic growth."
And article from the New York Times.....
" It is important to understand that, as GSEs, Fannie and Freddie were viewed in the capital markets as government-backed buyers (a belief that has now been reduced to fact). Thus they were able to borrow as much as they wanted for the purpose of buying mortgages and mortgage-backed securities. Their buying patterns and interests were followed closely in the markets. If Fannie and Freddie wanted subprime or Alt-A loans, the mortgage markets would produce them. By late 2004, Fannie and Freddie very much wanted subprime and Alt-A loans. Their accounting had just been revealed as fraudulent, and they were under pressure from Congress to demonstrate that they deserved their considerable privileges."
Now the Democrats are blaming the financial crisis on "deregulation." This is a canard. There has indeed been deregulation in our economy -- in long-distance telephone rates, airline fares, securities brokerage and trucking, to name just a few -- and this has produced much innovation and lower consumer prices. But the primary "deregulation" in the financial world in the last 30 years permitted banks to diversify their risks geographically and across different products, which is one of the things that has kept banks relatively stable in this storm."
As a result, U.S. commercial banks have been able to attract more than $100 billion of new capital in the past year to replace most of their subprime-related write-downs. Deregulation of branching restrictions and limitations on bank product offerings also made possible bank acquisition of Bear Stearns and Merrill Lynch, saving billions in likely resolution costs for taxpayers.
"Beginning in 1992, Congress pushed Fannie Mae and Freddie Mac to increase their purchases of mortgages going to low and moderate income borrowers. For 1996, the Department of Housing and Urban Development (HUD) gave Fannie and Freddie an explicit target -- 42% of their mortgage financing had to go to borrowers with income below the median in their area. The target increased to 50% in 2000 and 52% in 2005."
"For 1996, HUD required that 12% of all mortgage purchases by Fannie and Freddie be "special affordable" loans, typically to borrowers with income less than 60% of their area's median income. That number was increased to 20% in 2000 and 22% in 2005. The 2008 goal was to be 28%. Between 2000 and 2005, Fannie and Freddie met those goals every year, funding hundreds of billions of dollars worth of loans, many of them subprime and adjustable-rate loans, and made to borrowers who bought houses with less than 10% down."
"Fannie and Freddie also purchased hundreds of billions of subprime securities for their own portfolios to make money and to help satisfy HUD affordable housing goals. Fannie and Freddie were important contributors to the demand for subprime securities."
quote from Fannie’s 2006 10-K report makes clear, is untrue
"We have made, and continue to make, significant adjustments to our mortgage loan sourcing and purchase strategies in an effort to meet HUD’s increased housing goals and new subgoals. These strategies include entering into some purchase and securitization transactions with lower expected economic returns than our typical transactions. We have also relaxed some of our underwriting criteria to obtain goals-qualifying mortgage loans and increased our investments in higher-risk mortgage loan products that are more likely to serve the borrowers targeted by HUD’s goals and subgoals, which could increase our credit losses."
I don't deal in narratives, only facts searched out and compared to the lefts goofy one dimensional generalizations and talking points.
Bill Clinton in 1995 ....READ ABOVE... unleashed a long list of executive orders on the American public in his 1995 National Homeowners Strategy, as his DOJ and more specifically his AG lowered threats on lending institutions to play ball or face prosecution.
Clinton's Home ownership Strategy among other things lowered capital requirements for the GSE,s from 10% to 3% and changed how banks met their CRA requirements. As damaging, as irresponsible as that was it wasn't enough to make sure that Fannie and Freddie were going to follow through, so from 1993 to 1998 he changed ALL OF THEIR EXECUTIVES and over HALF OF THEIR BOARD OF DIRECTORS, including the CEO of Fannie Mae, Franklin Raines.
No, Wall Street and Investment banks didn't start poisoning the worlds financial markets with AAA rated mortgage backed Securities, Fannie Mae did, and it started THIS in 1997.
Remember the corrupt Ass-h** Eric Holder going after the credit rating agencies for giving toxic MBS's AAA ratings ? LOL !!! He used to work for Janet Reno, he used to threaten banks with prosecution of they didn't lower their standards. They were AAA rated because FANNIE MAE bought them and Bundled them.....duh.
Anyway, lets keep this going, you have obviously much to learn.
