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Revisiting Fannie/Freddie and the CRA in the Mortgage Crisis
The Provocateur ^ | 07/07/2009 | Mike Volpe

Posted on 07/07/2009 11:42:18 AM PDT by fiscon1

The Republicans have again chosen their favorite boogey men for blame in the mortgage crisis, Fannie Mae, Freddie Mac and the Community Reinvestment Act. The Republicans House Committee on Oversight and Government Reform lead by Congressman Darrell Issa has released this white paper today on all three entity's roles in the mortgage crisis. In my opinion, the Republicans have once again inflated the role of all three in the crisis.

(Excerpt) Read more at theeprovocateur.blogspot.com ...


TOPICS: Government
KEYWORDS: cra; economy; fanniemae; freddiemac
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1 posted on 07/07/2009 11:42:18 AM PDT by fiscon1
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To: fiscon1

You forgot the barf alert.


2 posted on 07/07/2009 11:44:00 AM PDT by Terpfen (Ain't over yet, folks. Those 2004 Senate gains are up for grabs in 2 years.)
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To: Terpfen

you can’t please everyone.


3 posted on 07/07/2009 11:49:51 AM PDT by fiscon1
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To: fiscon1

Every side has their bogey man. The truth is that there is blame to go around. Dumb government policy followed by dumb, greedy lenders, then the mortgage security traders, etc, etc.. A house of cards that finally came down. Want to blame someone? Look to your ideology, and then take your pick.


4 posted on 07/07/2009 11:51:24 AM PDT by Paradox (When the left have no one to villainize, they'll turn on each other.)
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To: fiscon1

At least they are getting their foot in the fascists’ door at the ground level.

All the other banking abuses occured as a result from this inital deal with Clinton and his agreement to stop banking regulation.

This is a libertarian argument...an effort to “blame both parties” and the expense of holding no one responsible. That “everyone is guilty” stance helps the Libertarian party but does not address any justice for the Nation. “Everybody does it” is not a valid campaign slogan for libertarians.

Some Republicans (including Ron Paul) objected and warned this mortgate and real estate melt down was coming. Liberals shouted them down as “racists’ and Rinos hid under their desks. Might not serve the interests of the Libertarian party but it serves the interest of truth!


5 posted on 07/07/2009 11:54:31 AM PDT by SaraJohnson
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To: fiscon1

But you can put a barf alert on to warn them.


6 posted on 07/07/2009 11:57:13 AM PDT by Terpfen (Ain't over yet, folks. Those 2004 Senate gains are up for grabs in 2 years.)
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To: Paradox
"and then take your pick."...

You got it right by naming GUBMINT 'first in line' there....

7 posted on 07/07/2009 11:59:51 AM PDT by litehaus (A memory tooooo long)
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To: Terpfen

I don’t understand what you mean and so I can’t help you until you do. If you have a problem with the piece, state it. Just simply making a crude comment doesn’t help me.


8 posted on 07/07/2009 12:00:11 PM PDT by fiscon1
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To: fiscon1

You ARE familiar with the FR lexicon, are you not?


9 posted on 07/07/2009 12:05:37 PM PDT by Terpfen (Ain't over yet, folks. Those 2004 Senate gains are up for grabs in 2 years.)
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To: fiscon1

Mostly I agree with this. Not sure why Bush gets so much of the blame when he walked into a tough situation from the tech crash, 9/11 and the Enron and other Wall St. scams that took place under Clinton’s watch. He didn’t cause the mess, he just made it worse though.

This was a bi-partisan pooch screw...


10 posted on 07/07/2009 12:07:17 PM PDT by misterrob (A society that burdens future generations with debt can not be considered moral or just)
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To: misterrob

I think Bush’s blame is for doing nothing when stated loans became the center of mass fraud. I think there is plenty of responsibility there.


11 posted on 07/07/2009 12:09:08 PM PDT by fiscon1
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To: Terpfen

Yes, I thought FReepers hate the Fed. This article blames the Fed. Is that not all right?


12 posted on 07/07/2009 12:09:35 PM PDT by fiscon1
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To: fiscon1

Okay, so you don’t know what a lexicon is, either. Glad we’ve cleared that up. And because I’m a nice guy, I’ll let you in on the barf alert tag: the phrase Barf Alert is inserted at the end of link titles when the contents of the article are so antithetical to factual reality that it makes one want to barf.

In this case, Issa’s ignorant ranting about “failures” during the Bush administration regarding the financial market make anyone with a modicum of a clue want to barf. If Issa knew what he was talking about, he wouldn’t have opened his mouth in the first place, considering that Democrats blocked Bush’s attempts at increasing oversight of Fannie Mae and Freddie Mac at least 14 separate times during his two terms. If Issa knew what he was talking about, he would instead be lambasting Barney Frank, the Congressional Black Caucus, Senator Chris “Countrywide” Dodd, and a few other individuals and groups for their direct role in creating the government-mandated subprime mortgage market, blaming the victims (the mortgage institutions) for being predatory when they had a legal gun to their head for the past decade, and then recently coming out and stating that the subprime mortgage market needs to come back.

As for what a lexicon is, you can head over to dictionary.com and figure it out.


13 posted on 07/07/2009 12:17:31 PM PDT by Terpfen (Ain't over yet, folks. Those 2004 Senate gains are up for grabs in 2 years.)
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To: Terpfen

Actually, he blames all of them.


14 posted on 07/07/2009 12:27:25 PM PDT by fiscon1
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To: fiscon1

He’s promoting his report as a repudiation of Bush and Hastert, and your blog entry bashes conservatives who go as far back as the CRA when listing causes of the subprime meltdown.

Both you and Issa are being dishonest.


15 posted on 07/07/2009 12:29:33 PM PDT by Terpfen (Ain't over yet, folks. Those 2004 Senate gains are up for grabs in 2 years.)
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To: fiscon1

Barney-Frank-is-the-root-of-all-evil-and-degeneracy bump


16 posted on 07/07/2009 12:30:54 PM PDT by WashingtonSource
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To: Terpfen

No, the blog entry bashes conservatives that say the CRA is the cause when clearly, according the numbers, the CRA is insignifcant.


17 posted on 07/07/2009 12:36:24 PM PDT by fiscon1
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To: fiscon1

The CRA is the wedge by which the government began telling mortgage brokers who to lend to without regard for profitability or sustainability.

It doesn’t have to show up in the numbers. It’s the starting point for the entire mess.


18 posted on 07/07/2009 12:38:09 PM PDT by Terpfen (Ain't over yet, folks. Those 2004 Senate gains are up for grabs in 2 years.)
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To: Terpfen

You know this how. Are you a mortgage broker? Do you really think that some inconsequential program had a systemic effect on the market? Is that really reasonable? The program itself accounted for a fraction of all loans, but somehow it had a systemic effect. Does that sound right to you?

Do you really think the government was even telling mortgage brokers who to lend to. Why did this program get transformed in the 1990’s but the crisis happened nearly a decade later.


19 posted on 07/07/2009 12:42:49 PM PDT by fiscon1
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To: fiscon1
Do you really think that some inconsequential program had a systemic effect on the market?

It is not inconsequential. It is the mechanism by which the government artificially created the subprime mortgage market.

If you disregard the CRA and government mandates fostered upon the mortgage industry, you are essentially stating that mortgage lenders, of their own decision, voluntarily began issuing mortgages en masse to people who they knew could not and would not ever repay the loan. You are essentially stating these businesses committed financial suicide of their own accord. What's more outlandish, the idea that the government gave itself the authority to decide who gets to live where, or the idea that a lending institution decided itself to give out money to people who would never repay it?

Think a little bit before you speak.
20 posted on 07/07/2009 12:48:07 PM PDT by Terpfen (Ain't over yet, folks. Those 2004 Senate gains are up for grabs in 2 years.)
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