Posted on 10/01/2008 7:18:21 AM PDT by Harley
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.
The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.
(Excerpt) Read more at query.nytimes.com ...
lets see.... who was president then?
But they have found over the years that the public's resistance to encroaching government is weakened by creating repeated phony crises.
Now the current "crisis"...is it real...or is it yet another phony crisis?
he claims no one told him.
He can't read?
Barney Frank has always been deeply interested in Fanny.
Doesn’t matter....Bush’s fault.
A better one....who controlled Congress then?
This is so dumb on its face, you can hardly believe anyone would do it or report on it without comment. The problem for the GOP is that President Bush made matters worse. Didn't he have some kind of low income housing initiative in his first term, back in the "new tone" days?
They don’t call him “Backdoor Barney” for nothing.
This is the one thread that no one is complaining that “it already been posted”...It cannot be posted enough times!
Right.
Jesse Jackson and Co. demanded easy credit for the uncreditworthy, and the GOP rolled over and let it happen.
“Doesn’t matter....Bush’s fault.”
Yep, it was deregulation. Clearly no one in government was encouraging easy money. I mean, Fannie & Freddy are completely private, right? Right?
How does Obama, or anyone, stick to the anti-free-market argument? Are they stubborn or daft? I’m waiting for Obama to start referring to “economic royalists” like Roosevelt.
A better question. In the six following that who controlled Congress and the white House. And, why didn't THEY fix it?
Let's see who was In charge of that effort? I think it was John McCain...
and the Democraps (led by Barney Frank, with his close associate Raines) who blocked it. THERE IS VIDEO of Frank saying there was noting wrong with Fannie Mae.
You are exactly right and that is the ALINSKY MODEL followed by HilLIARy and Obama/ACORN !!!!!
Law of unintended consequences kicking in. This initiative allowed an unstable economy to go unnoticed or ignored for nearly a decade because home ownership was increasing (while real wages made no noticable gains). The root cause of our current problems probably go back further, though.
Perot was right about NAFTA, and papa Bush should never have given MFN status to China. The biggest wealth-redistribution scheme EVER. After nearly 20 years, that chicken has come home to roost and laid one hell of an egg.
There it is, a prime building block of the credit crisis.
With the Community Reinvestment Act, a strong arm of banks and lending institutions to extend credit to sketchy borrowers. Opponents were branded as racists by the new Fascists, the Democrats and racial arsonists.
Now, we have Obama, who embraces and will vastly expand this thinking. He will begin by redistributing income, and seizing Exxon profits.
The Wall Street Scam artists heard it.
ACORN heard it.
Corrupt mortgage brokers heard it.
Congressmen lined their pockets with donations heard it.
Trust me, the shot was heard.
The Wall Street Scam artists heard it.
ACORN heard it.
Corrupt mortgage brokers heard it.
Congressmen who lined their pockets with donations heard it.
Trust me, the shot was heard.
More of the warnings....
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.”
There was a lot of good information but the scandal remained underneath the radar.
Check out this post. This post I received very few replies and very few views.
US Senate panel plans one more hearing on GSE bill (Fannie Mae scandal)
Reuters ^ | Tue Jun 20, 2006 6:10 PM ET | By David Lawder
Posted on Tue Jun 20 23:40:58 2006 by april15Bendovr
We can't have it both ways. The Republicans were in the majority. They could have brought those bills to a vote.
It's like saying that the republicans stopped the bill yesterday. It's not possible because they don't have a majority.
Who was the Secretary of HUD in 2006? HUD is the agency that controlled Fannie and Freddie till this year.
Sadly this scandal at times was a sleeper even here at Free Republic in 2006
The point I had always wanted to raise was
Look at when and why Jamie Gorelick was appointed to the 9/11 Commission.
The Democrats new if this scandal reached the surface they would be in big trouble.
Jamie Gorelick was a convenient distraction at the time and by nominating this former high ranking women of the DOJ as 9/11 Commissioner she was in the unique position to discredit any info that could of helped President Bush like the Army data-mining program Operation Able Danger.
She was in a position to keep the Democrats on life support with this scandal.
Check out this article by our former FBI Director
http://www.opinionjournal.com/extra/?id=110007559
An Incomplete Investigation
Why did the 9/11 Commission ignore “Able Danger”?
by LOUIS FREEH
Thursday, November 17, 2005 12:01 A.M. EST
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.