Blah Blah Blah, you offer nothing, no facts.
I have shown Pres. Bush policy to put 5.5 million minority families in homes and they went after it. Repub SEC under Chris Cox relexed net capital rule and allowed the biggest banks to 3X their leverage increasing their instability and directly leading to the failure of all of them except Morgan Stanley which converted to a regular bank. And Bill Frist and the repubs in the Senate killed the last chance to reform the GSE's in 2005, increasing the size of the financial crisis considerably, in secret while repubs said they were for reform, what hypocrits!
And you post no facts, no supporting opinions from any experts. Pfffftttt. You got nothing. What kills me is the delusional nature of the right, even when presented with the facts of how the repubs drove us over the cliff with THEIR hands on the wheel. But you can't fool all the people all the time, and the public has dealt with the repubs, as they should.
Here we see the problem EXPLODED in 2004, the year the SEC allowed the investment banks to triple their leverage. That was the problem, it allowed the biggest banks to take on huge amounts of new mortgages, get S&P to rate them AAA and sell them all over the world. And you want to say CRA passed in 1996 did that, no way. Something else happened in 2003/2004 while the repubs ran the show. That is all on the repubs!
Subprime mortgage crisis - Wikipedia, the free encyclopedia
WIKI ? Are you that desperate for slanted opinions ?
How about actual Historical events ?
1992: Congress passes the inaptly named “Federal Housing Enterprises Financial Safety and
Soundness Act” (GSE Act). Instead of requiring safe and sound operations, ACORN and other
groups successfully lobby for affordable housing mandates.
As a result, Fannie and Freddie are
forced to progressively loosen their underwriting standards and, for the first time, become
competitors with FHA and traditional subprime lenders."
1995: President Clinton and HUD announce the “National Homeownership Strategy”
(Homeownership Strategy):
Clinton...
"[Having] 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 and
reduce the barriers facing underserved populations and communities."
1994: “Fannie Mae Chairman Commits Company to 'Transforming the Housing Finance
System;' Vows Company Will Provide $1 Trillion in Targeted Lending"
1999: “Fannie Mae Eases Credit to Aid Mortgage Lending:”
"In a move that could help increase home ownership rates among minorities and low income consumers, the Fannie Mae Corporation is easing the credit requirements on
loans that it will purchase from banks and other lenders. . . .
"Fannie Mae has expanded home ownership for millions of families in the 1990's by
reducing down payment requirements,‟ said Franklin D. Raines, Fannie Mae's chairman
and chief executive officer. „Yet there remain too many borrowers whose credit is just a
notch below what our underwriting has required who have been relegated to paying
significantly higher mortgage rates in the so-called subprime market.‟ . . .
In moving, even tentatively, into this new area of lending, Fannie Mae is taking on
significantly more risk, which may not pose any difficulties during flush economic times.
But the government-subsidized corporation may run into trouble in an economic
downturn, prompting a government rescue similar to that of the savings and loan industry
in the 1980's."
1991: A community organizer tells the U.S. Senate Committee on Banking, Housing, and Urban
Affairs:
“It is becoming increasingly clear that [Fannie and Freddie had] been a hidden loan officer
at the loan origination table.”
1991: HUD‟s Advisory Commission on Regulatory Barriers to Affordable Housing reports:
“The market influence of Fannie Mae and Freddie Mac extends well beyond the number
of loans they buy or securitize; their underwriting standards for primary loans are widely
adopted and amount to national underwriting standards for a substantial fraction of all
mortgage credit.”
"Fannie Mae‟s and Freddie Mac‟s underwriting standards are oriented towards „plain
vanilla‟ mortgages."
1991: Testimony before the U.S. Senate Committee on Banking, Housing, and Urban Affairs:
"'Lenders will respond to the most conservative standards unless [Fannie Mae and
Freddie Mac] are aggressive and convincing in their efforts to expand historically narrow
underwriting.‟ This point was reinforced over and over again by other [community
advocacy] witnesses."
These groups were successful in convincing Congress to impose affordable housing (AH)
mandates on Fannie and Freddie. This set in motion 14 years of ever looser loan standards:
"Because the GSEs have a funding advantage over other market participants, they have the
ability to under price their competitors and increase their market share. This advantage, as
has been the case in the prime market, could allow the GSEs to eventually play a
significant role in the subprime market. As the GSEs become more comfortable with
subprime lending, the line between what today is considered a subprime loan versus
a prime loan will likely deteriorate, making expansion by the GSEs look more like an
increase in the prime market. "
"After the warm and fuzzy glow of „flexible underwriting standards‟ has worn off; we
may discover that they are nothing more than standards that led to bad loans. Certainly, a
careful investigation of these underwriting standards is in order. If the „traditional‟ bank
lending processes were rational, we are likely to find, with the adoption of flexible
underwriting standards, that we are merely encouraging banks to make unsound loans. If
this is the case, current policy will not have helped its intended beneficiaries if in future
years they are dispossessed from their homes due to an inability to make their mortgage
payments. It will be ironic and unfortunate if minority applicants wind up paying a very
heavy price for a misguided policy based on badly mangled data.
“Over the past ten years, there has been a "revolution in affordable lending‟ that has
extended home-ownership opportunities to historically undeserved households. Fannie
Mae and Freddie Mac have been a substantial part of this „revolution in affordable
lending.' During the mid-to-late 1990s, they added flexibility to their underwriting
guidelines, introduced new low-down payment products, and worked to expand the use of
automated underwriting in evaluating the creditworthiness of loan applicants. HMDA
data suggest that the industry and GSE initiatives are increasing the flow of credit to
undeserved borrowers. Between 1993 and 2003, conventional loans to low income and
minority families increased at much faster rates than loans to upper-income and non-minority families.”
The National Homeownership Strategy resulted in the substantial elimination of down-payments.
I could continue to post evidence to your hackery and partisan nonsense that shows the GSE's and Govt programs were the primary cause and perpetuating factor to the sub-prime collapse and not your simplistic one dimensional accusation that our last President was even remotely involved but you've got your head firmly planted and it's apparently a waste of time.
You cant cure....well you know.