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Andrew Cuomo - How the youngest HUD Secretary in history gave birth to the mortgage crisis
Village Voice ^ | August 5, 2008 | Wayne Barrett

Posted on 09/21/2008 6:35:28 PM PDT by silverleaf

Andrew Cuomo and Fannie and Freddie

How the youngest Housing and Urban Development secretary in history gave birth to the mortgage crisis By Wayne Barrett ...... http://www.villagevoice.com/2008-08-05/news/how-andrew-cuomo-gave-birth-to-the-crisis-at-fannie-mae-and-freddie-mac/ There are as many starting points for the mortgage meltdown as there are fears about how far it has yet to go, but one decisive point of departure is the final years of the Clinton administration, when a kid from Queens without any real banking or real-estate experience was the only man in Washington with the power to regulate the giants of home finance, the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC), better known as Fannie Mae and Freddie Mac.

Andrew Cuomo, the youngest Housing and Urban Development secretary in history, made a series of decisions between 1997 and 2001 that gave birth to the country's current crisis. He took actions that—in combination with many other factors—helped plunge Fannie and Freddie into the subprime markets without putting in place the means to monitor their increasingly risky investments. He turned the Federal Housing Administration mortgage program into a sweetheart lender with sky-high loan ceilings and no money down, and he legalized what a federal judge has branded "kickbacks" to brokers that have fueled the sale of overpriced and unsupportable loans. Three to four million families are now facing foreclosure, and Cuomo is one of the reasons why.....

(Excerpt) Read more at villagevoice.com ...


TOPICS: Business/Economy; Crime/Corruption; Government; News/Current Events; US: New York
KEYWORDS: clintonlegacy; crook; cuomo; economicpolicy; electionpresident; fanniemae; fnma; freddiemac; housingbubble; hud; mccainareyounuts; mccainpalin; villagevoice
The Village Voice reports. Even a stopped clock is right twice a day and sometimes a liberal publication does good reporting..
1 posted on 09/21/2008 6:35:28 PM PDT by silverleaf
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To: silverleaf

This is McCain’s pick for a new SEC Chairman?


2 posted on 09/21/2008 6:37:05 PM PDT by silverleaf (Fasten your seat belts- it's going to be a BUMPY ride.)
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To: silverleaf

I’m starting to wonder if McCain was being sarcastic.


3 posted on 09/21/2008 6:39:26 PM PDT by Sacajaweau (I'm planting corn...Have to feed my car...)
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To: silverleaf
He turned the Federal Housing Administration mortgage program into a sweetheart lender with sky-high loan ceilings and no money down

The sad thing is the same thing happened in the mid 80s. Looks like we didn't learn then, and now we must pay the price.

4 posted on 09/21/2008 6:40:30 PM PDT by The_Media_never_lie
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To: silverleaf

And McCain on 60 Minutes tonight said this was the best person for the SEC job.

McLame.


5 posted on 09/21/2008 6:42:41 PM PDT by ConservativeMind (What's "Price Gouging"? Should government force us to sell to the 15th highest bidder on eBay?)
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To: ConservativeMind

What next? Franklin Raines for Treasury?


6 posted on 09/21/2008 6:44:15 PM PDT by silverleaf (Fasten your seat belts- it's going to be a BUMPY ride.)
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To: silverleaf
Almost all roads in this most recent crisis lead to liberal government excess, liberal government corruption and cronyism, and liberal-style economic/social engineering.

We just have to keep shining a light on this until enough people 'get it'.

That's why we need Governor Sarah Palin to "Wake Up the World"...see the video

7 posted on 09/21/2008 6:47:57 PM PDT by NewLand (See "Gov Palin Wakes Up The World" @ http://www.youtube.com/watch?v=YJKsTZIDtbk)
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To: silverleaf
I doubted it

New York Democratic Atty General

brother of ABC reporter Chris

8 posted on 09/21/2008 6:49:50 PM PDT by scooby321 (Cai)
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To: silverleaf
What next? Franklin Raines for Treasury?

300,000,000 people in America, and the same 0.00001 of 1 per cent of the population getting recycled time after time into positions of authority. The same bastards who break things called on to "fix" what's broken.

We suffer mightily from a failure of vision. My Aunt Sally's cat could do as well.

9 posted on 09/21/2008 6:54:25 PM PDT by RobinOfKingston (Man, that's stupid ... even by congressional standards.)
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To: silverleaf

You know McCain’s RINO credentials keep coming through and scaring the hell out of me. He sits there with Gramm and recommends Cuomo....sheesh. If it wasn’t for Palin I’d sit this one out.


10 posted on 09/21/2008 6:54:39 PM PDT by Roamin53 (Islamists kill more people each year in the name of religion than the Inquisition did in 350 years!)
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To: silverleaf

For McCain to actually “reach across the aisle,” he’d have to be reaching out to conservatives.


11 posted on 09/21/2008 6:54:42 PM PDT by EternalVigilance (Beware the Bear.)
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To: Sacajaweau

like appointing Obama for his cabinet?


12 posted on 09/21/2008 6:56:03 PM PDT by ari-freedom (We never hide from history. We make history!)
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To: silverleaf

Wow...this is from the Village Voice? I can’t see the media throwing Cuomo and Clinton under the bus on this one.

What happened to the Village Voice? Someone over there grew some huevos.


13 posted on 09/21/2008 6:56:15 PM PDT by I got the rope
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To: Sacajaweau

He said that?

Sheesh.


14 posted on 09/21/2008 6:57:22 PM PDT by RockinRight (Obama who?)
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To: silverleaf

This is precisely the kind of thing that makes me say Palin is just as qualified as all three senators in the race.


15 posted on 09/21/2008 6:57:56 PM PDT by afortiori
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To: silverleaf

This is precisely the kind of thing that makes me say Palin is just as qualified as all three senators in the race.


16 posted on 09/21/2008 6:58:03 PM PDT by afortiori
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To: silverleaf

btt


17 posted on 09/21/2008 7:02:04 PM PDT by Cacique (quos Deus vult perdere, prius dementat ( Islamia Delenda Est ))
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To: ConservativeMind

Cuomo as NY Attorney General also launched an investigation into Fannie Mae and Fannie Mac — maybe his time at HUD taught him how unscrupulous they were. Why not wait until all the facts are in instead of immediately trashing Senator McCain. Notice how the anti-McCain crowd has jumped on this. Now for the rest of the story:

From SEMom: Well- Cuomo apparently DID do some investigating on Freddie/Fannie:

http://www.nypost.com/seven/11082007/business/fannie__freddie_hit_in_cuomo_assess_prob_543687.htm

By JANET WHITMAN
November 8, 2007

New York Attorney General Andrew Cuomo served government-sponsored lenders Fannie Mae and Freddie Mac with subpoenas yesterday as he expands his probe into bad behavior in the mortgage business that’s behind a spike in home foreclosures.

Cuomo is investigating whether home loans purchased by Fannie Mae and Freddie Mac - the nation’s biggest investors in mortgages - were based on bogus appraisals that fraudulently inflated the value of homes.

The subpoenas come a week after Cuomo accused real-estate appraisal giant First American Corp. of colluding with Washington Mutual to slap fake values on thousands of homes to help make sure loans went through.

Cuomo said at a press conference that he believes the chicanery has gone on for more than a decade and extends far beyond Washington Mutual.

“I believe it’s widespread. I believe it’s the rule not the exception. And we’re investigating Fannie Mae and Freddie Mac and other investment banks as to the underlying practices that have allowed this to go on for so long.”

Cuomo said Washington Mutual and other banks put pressure on appraisers to provide inflated values because they were in the interest of the lenders, which would reap fees and interest but be shielded from risk by quickly selling the loans off into the secondary market.

“Knowing this, Fannie Mae and Freddie Mac cannot afford to continue buying Washington Mutual mortgages unless they are sure these loans are based on reliable and independent appraisals,” Cuomo said.

With the inflated appraisals, buyers purchased homes for substantially more than they were worth, contributing to the current mortgage crisis.

Homeowners and investors who buy mortgage securities are the ones “left holding the bag,” said Cuomo.

Shares of Fannie Mae and Freddie Mac, which were created by Congress to make home ownership affordable for low-income folks, got hammered on the news. Fannie Mae fell 10 percent to $49.79. Freddie Mac dropped nearly 9 percent to $45.13.

The companies have agreed to retain an independent examiner to review appraisals and mortgages they purchased.

Brian Faith of Fannie Mae said, “It is against our interest to purchase or guarantee mortgages with inflated appraisals, and so it is in Fannie Mae’s interest that these appraisal practices be investigated.”

If the examiner finds they own mortgages with inflated appraisals, the lender must buy back the loans, he said.

Washington Mutual shares tumbled 17 percent yesterday after it warned mortgage losses would mount in 2008.


18 posted on 09/21/2008 7:06:56 PM PDT by PhiKapMom ( BOOMER SOONER -- VOTE FOR McCAIN/PALIN2008! LetsGetThisRight.com)
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To: silverleaf
Get serious folks. McCain has the media scratching their heads. I expect him to drop a few more name shockers before November. Tickles me. Remember all the names he threw out for VP, had everyone in a tizzy about it. The media is still enraged they were tricked.

Let McCain run his independent side his way. If we don't win this election, the country will suffer to the extreme.

19 posted on 09/21/2008 7:08:35 PM PDT by Hattie
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To: Sacajaweau

I sure hope he was being sarcastic. Otherwise I’d have to conclude he was being “elderly.” :p


20 posted on 09/21/2008 7:10:21 PM PDT by madison10 (Pray every day for McCains, Palins and the USA...and the rest of us, too.)
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To: silverleaf

I think its silly to blame Andrew Cuomo for the current financial crisis. Its everyone’s fault from the President down to John Doe who bought a house he couldn’t afford.


21 posted on 09/21/2008 7:12:46 PM PDT by MinorityRepublican
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To: silverleaf

We’re doomed if this is the best McCain can come up with.

Good God!!


22 posted on 09/21/2008 7:21:36 PM PDT by Dick Bachert
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To: silverleaf
This is McCain’s pick for a new SEC Chairman?

Yes indeed! Is that not hilarious!

And no, McCain was not joking.....I tried to tell you people. I tried......

23 posted on 09/21/2008 7:24:27 PM PDT by Cold Heat (Well....................................That's .....that.........)
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To: MinorityRepublican
No it is not silly. It is what it is.

This all started when the Black Caucus got their hooks into Fanny, and they used it as a vote buying cash cow.

24 posted on 09/21/2008 7:26:20 PM PDT by Cold Heat (Well....................................That's .....that.........)
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To: silverleaf

Bumpity-bump.


25 posted on 09/21/2008 7:42:59 PM PDT by BenLurkin
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To: silverleaf

There’s a whole lotta stupid in that article. More inaccuracies than I can even enumerate here. This one should go in the trash bin immediately.


26 posted on 09/21/2008 7:45:58 PM PDT by Dems_R_Losers (NEVER FORGET -- it all started with Fannie Mae and the Democrats!)
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To: Cold Heat
This all started when the Black Caucus got their hooks into Fanny, and they used it as a vote buying cash cow.

So? Why didn't Republicans stop all this?

27 posted on 09/21/2008 7:56:05 PM PDT by MinorityRepublican
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To: PhiKapMom

Interesting read.


28 posted on 09/21/2008 8:06:21 PM PDT by PowerPro (McCain/Palin FTW)
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To: Sacajaweau
I’m starting to wonder if McCain was being sarcastic.

Could he possibly have been spurring the press to look into how Cuomo, ACORN, etc. brought us into this mess?

Is it... possible?

29 posted on 09/21/2008 8:23:54 PM PDT by unspun (Tell the truth about Obama to all you know.)
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To: silverleaf

Bookmark


30 posted on 09/21/2008 8:39:50 PM PDT by pepperdog (The world has gone crazy.)
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To: NewLand

Remember what happened when Clinton tried to limit CEO salaries?


31 posted on 09/21/2008 9:07:55 PM PDT by art_rocks
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