Skip to comments.Proof that Liberalism caused sub-prime crisis
Posted on 01/10/2008 1:33:55 PM PST by Republican Extremist
We all know that HUD Secretary under Clinton, Henry Cisneros began pushing for a relaxation of the rules to help lower class (AKA: people who cannot afford a home) people buy houses.
I now have the smoking gun that proves that Liberalism, as practiced by the head of the largest home lender in the country actually caused this problem.
We are talking about Angelo Mozilo, CEO of Countrywide Financial, the largest lender of mortgages in the country.
Mozilo gave a speech on Feb 4th, 2003 at the Harvard Joint Center for Housing Studies.
In this speech, Mozilo lays out the reasons why unqualified people should get mortgages because of their race, and how the rules should be relaxed to help them.
Countrywide's Chairman Mozilo Delivers John T. Dunlop Lecture
- Leader Calls on Mortgage and Housing Industries to Address Homeownership Gap -
WASHINGTON, Feb. 4 /PRNewswire-FirstCall/ --
Angelo R. Mozilo, chairman, CEO and president of Countrywide Financial Corporation, Inc., (NYSE: CFC), urged mortgage professionals, housing experts and others to address the obstacles that create an "intolerably wide" gap between minority and lower-income homeownership and what is classified as white homeownership.
Mozilo delivered the John T. Dunlop Lecture sponsored by the Joint Center for Housing Studies of Harvard University and the National Housing endowment on Tuesday night.
In his presentation entitled "The American Dream of Homeownership: From Cliche to Mission," Mozilo told his audience, "Expanding the American dream of homeownership must continue to be our mission, not solely for the purpose of benefiting Corporate America, but more importantly, to make our country a better place." He went on to outline bold suggestions that the mortgage industry and others should consider to overcome barriers to homeownership. These include elimination of mortgage down payment requirements, educational efforts to make the home loan process easier to comprehend, and reduction and streamlining of loan application documentation.
Mozilo drew upon his 50 years of experience in the mortgage industry and cited Countrywide's successful efforts to increase homeownership opportunities for minority and lower-income borrowers. From these perspectives, he identified and commented on several structural obstacles within residential finance business practices that adversely impact home-buying among these constituencies:
-- The loan underwriting process: "We must look for ways to capture 'alternative' payment histories and to properly factor in cultural differences in credit, income and spending habits, so that we can say 'yes' to borrowers who have the ability and willingness to make their mortgage payments. Credit scores must not be the dominant factor for assessing risk. Non-traditional factors such as rent and utility payment history should be imbedded in the automated underwriting process."
-- Loan performance measurement: "Let's focus on the majority of people who are successfully managing their loans and living their dream. Let's not be obsessed by the few that fail, but instead be encouraged by the vast majority who succeed. Let's look for every possible reason to approve applicants, not to reject them.
-- Counter-productive regulatory efforts: "With respect to predatory lending, enough of the mania. Let's be mindful that reputable lenders cannot operate under hundreds of laws that only have one thing in common -- the word 'predatory.' Subprime lending and predatory lending are not the same thing. Brushing them with one broad stroke only wipes out the opportunities for omeownership for too many deserving low-income and minority home buyers.
Mozilo spoke of the importance of homeownership to families, communities and the nation. "In addition to increasing personal wealth and adding to our national economy, creating more homeownership opportunities and narrowing the homeownership gap increases social capital. In other words, it ties families, neighborhoods and communities together," he explained. Citing several studies, he noted that children living in owned homes have higher math and reading achievement levels, and homeowners are more likely than renters to belong to civic groups, such as parent-teacher organizations.
In conclusion, Mozilo said, "Housing is critical to our nation's welfare and to our communities' well-being. Let's make sure that the American dream of Homeownership is never a cliche, and always our cause, and always our steadfast mission. We have the resources. Together, as partners, let's show the will."
The John T. Dunlop Lecture was held at the National Housing Center in Washington, DC. The Dunlop Lecture series honors a distinguished member of the Harvard community in recognizing the contributions of emeritus professor John T. Dunlop and his distinguished career at the University, in government, and in the private sector. Dunlop played a key role in establishing the Policy Advisory Board of the Joint Center for Housing Studies. Mozilo serves on that board, as well as the Board of Trustees of the National Housing Endowment, and has been inducted into the National Association of Home Builders Hall of Fame.
Founded in 1969, Countrywide Financial Corporation, Inc. (formerly Countrywide Credit Industries, Inc.) is a member of the S&P 500, Fortune 500 and Forbes 500. Countrywide, through its family of companies, provides mortgage banking and diversified financial services in domestic and international markets. Consumer businesses include mortgages, insurance and other financial products. Business-to-business activities encompass capital markets, transaction processing and insurance. The company is headquartered in Calabasas, California, and has 30,000 employees with more than 500 offices nationwide. For more information about the company, visit Countrywide's Web site at http://www.countrywide.com.
SOURCE Countrywide Financial Corporation, Inc.
Let's remember this lesson, always....
He must have known our nanny state gov’t would bail them out if they defaulted.
Stop the mortgage crisis . Make your own F$#@*%G house payment .
What a load of horseshit that man spewed out at Harvard. Basically, he said let’s jigger the rules to give loans to minority borrowers even if they are by traditional measures are bad credit risks and then continues on to say that he would screw them with high interest rates to help them become homeowners.” It’s a recipe for disaster.
Of course, Mazilo and the Dem class-baiters were responsible for the sub-prime fiasco. Mortgage lenders weren’t checking to see if borrowers even had a job, for crying out loud.
Today Bank of America announced it was negotiating to take over Countrywide. Let’s hope the “Opportunity Bank” doesn’t have the same screwy philosophy that bankrupted Countrywide.
Ive always said the Democrat Party is for people who are bad at math...
maybe I’m dreaming but I could have sworn I saw a TV spot last night about Countrywide being in financial trouble.
Well it’s not fair that only “rich” people or people with steady income should be able to buy houses.
If you create a society of people via low expectations then every facet of their lives has to be managed via low expectations. So in this sense hes just playing his part in the broken lives of minorities who are owned by the liberal establishment.
This fiasco knows no political bounds ...
Nor were they even worried if the borrowers were even LEGAL CITIZENS OF THE U.S.A.
I have to point out that Ameriprise is a private company, so he lost his own money, not the money of shareholders.
Self congratulation has always been the basis of liberal social policy.
Never trust a man with a fake tan (who isn’t in show biz).
And cause and effect.
And cost/benefit analysis.
“With respect to predatory lending, enough of the mania. Let’s be mindful that reputable lenders cannot operate under hundreds of laws that only have one thing in common — the word ‘predatory.’ Subprime lending and predatory lending are not the same thing.”
according to Angelo R. Mozilo, chairman, CEO and president of Countrywide Financial Corporation, Inc., and yet, in unison 4 years later that - predatory lending - is exactly the charge his liberal supporters hit his industry with. Who was right? Neither of them. Who was wrong? Both he and his liberal supporters.
Why? Compassion cannot replace ability to pay - it either exists or it doesn’t and short-circuiting the due diligence to determining it does not change the outcome from the lack of it. The lenders were no more predatory (greedy) than the unqualified mortgage applicants that got a free pass.
Bump for the general election.
Wow..would you want a mortgage from a guy in a shark skin suit and gold tie?
BofA give illegals $500.00 limit credit cards
OK, for all you unedjimicated folks, this is only a tiny part of the credit problem.
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