Fannie Mae Eases Credit To Aid Mortgage Lending

NY Times ^ | September 30, 1999 | STEVEN A. HOLMES

[jessduntno]

Whjy is this not a McCain Ad? Get Fred Thompson to read it in a chair by a fireplace? Then say "WTF"?????

[stboz]

I guess I just don’t get it. If you don’t qualify, there is likely a real reason......like you don’t have the ability to pay the loan.

[Mark was here]

He may get arrested in Missouri.

[presently no screen name]

increasing pressure from the Clinton Administration

How many messes had this administration had to clean up from slick willy and the smartest woman on earth?

[Beowulf9]

Gotta be politically correct you know.

[presently no screen name]

It’s the ‘handout’ and ‘no accountability’ liberal mindset in play - and now we see the results.

[GOP Poet]

bookmark

[Beowulf9]

What fools. Now the rest of us have to pay. Out here in Phoenix they loaned money to illegals to buy houses. Once they couldn’t keep up the payments they dumped the houses back on the market.

[avacado]

In 2002 the NAACP used one of those shaky loans to “diversify” my neighborhood. They put a minority couple into a beautiful 2 story home across the street from me. Well, the succeeded in "diversifying" the neighborhood! Never before had we experienced the police constantly being called for wife-beating. The house ended up in foreclosure.

[HereInTheHeartland]

“Fannie Mae, the nation’s biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people “

Fannie Mae used to be a good, boring organization, that provided a valuable service.
Until Democrats corrupted it.

[PeskyOne]

If Obama is going to have his Truth Squad go after anyone who 'says something untrue about him, or makes a misleading ad', shouldn't turn about be fair play? This came from FoxNews homepage: Asked during an interview on CBS' "Face the Nation" whether McCain deserved credit for bringing lawmakers together, Obama said "no."

"Here are the facts: For two weeks I was on the phone everyday with Secretary Paulson and the congressional leaders making sure that the principles that have been ultimately adopted were incorporated in the bill," Obama said. This should be easy enough to check out, but I don't believe for one minute Obama was on the phone everyday for two weeks with Sec. Paulson! I believe Obama tries to take credit for things he had nothing to do with. Didn't he tell them 'to call him if they needed him?' Apparently, they didn't need him!

[TexasCajun]

increasing pressure from the Clinton Administration

Via The Community Reinvestment Act !

[presently no screen name]

Clinton’s only good at conning people with his smarmy words- he’s clueless when it comes to economics. Figures don’t lie and clinton does. Now, Hillary, tell us, again, how you are the keeper of what’s in our best interest.

[TruthWillWin]

Here's more information on what Clinton did to create this mess:

How A Clinton-Era Rule Rewrite Made Subprime Crisis Inevitable

[AuntB]

I’ve been purging through 25 years of paperwork. I just came across a note I made while listening to a radio program about an article in Mother Jones from 2000.

The title is “HOME CHEAT HOME”.

First the notes I made: Cuomo, HUD...Mortgage bankers lobby....changes in 1994 to lending voted in by the democrats....realtor and lender often the same....low income limit mortgage loan $220,000.00......6 to 8 billion per year on defaults......FBI Investigating.......

And yesterday we heard the ‘FBI is investigating”...again???

http://www.motherjones.com/news/outfront/2000/07/outfrontja00.html

July/August 2000 Issue Mother Jones

[snip]Evans is among tens of thousands of low-income homeowners victimized by a scam called “flipping” that is being repeated every day in inner-city neighborhoods from Syracuse to Los Angeles. To resurrect blighted urban areas, the government sells abandoned houses to real estate investors for renovation. But some speculators simply slap on cosmetic repairs and “flip” the properties, reselling them for many times their true value. Because the FHA co-signs the loans, it gets stuck with the bill when homeowners can’t pay the inflated mortgages. Last year the agency spent $6.5 billion to bail out 78,890 home loans that went bad-up 30 percent in three years. The foreclosed homes are seized, boarded up, and put back on the market, and the cycle starts all over again.

“We have found flipping scams in every city we’ve investigated,” says an official with the Department of Housing and Urban Development, which recently indicted 41 Realtors, lenders, and appraisers in California. “What has me shaking is that we have these kinds of numbers on defaults and we are in a bull market.”

Federal investigators call flipping more lucrative than bank robbery — but it was mortgage bankers who lobbied to make the scheme possible. Historically, the FHA assigned independent appraisers to inspect houses and set a fair value. But lenders wanted to select their own appraisers. They claimed it would streamline the process. But it would also make it easier to find someone who would ignore shoddy repairs and approve jacked-up prices.

The industry certainly had plenty of clout on Capitol Hill. From 1991 to 1994, lenders handed out $2.3 million in campaign contributions, and the investment paid off. At a meeting of the Mortgage Bankers Association in 1993, the FHA unveiled a “lender select” policy allowing bankers to choose appraisers. The news was greeted by a standing ovation.

Because the FHA supports low-income home buyers with shaky credit, defaults on agency loans have always been above the industry average. But since lenders have been allowed to handpick their own appraisers, investigators say, foreclosures have skyrocketed.”