Skip to comments.1999 NY Times Story Predicted the Fannie/Freddie Mortgage Meltdown
Posted on 02/25/2009 3:26:30 AM PST by Halfmanhalfamazing
RUSH: This is from September 30th, 1999. Headline: "'Fannie Mae Eases Credit To Aid Mortgage Lending' -- 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. 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 and felt pressure from stock holders to maintain its phenomenal growth in profits.
''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. 'Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.' Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market. In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's."
Right here it is, the New York Times, a story by Steven Holmes, September 30th, 1999. The Clinton administration pressuring Fannie Mae to make loans to people that couldn't pay 'em back. It's a great thing we're doing, affordable housing.
RUSH: Okay. We just went back in time to the news archives of the New York Times September 30th, 1999, and learned everything we know about the mortgage industry. Fannie Mae, Freddie Mac. Make loans to people who can't afford them. Expanding home ownership for millions of families. Reducing down payment requirement. All the things that led to all this. It's right there in five or six paragraphs of the New York Times, 1999.
The New York Times is a diseased walking Leftist corpse, that hasn’t figured out it’s dead yet. The only questions left, are will wee see mass layoffs and payoffs, or will it be quick, and one day there will be chains and padlocks on all the doors when the rats, pigs, and other assorted leftist death freak baby killers, show up for work?
All we have to do is very politely educate our children and one in ten of those who voted for Obama. We can then throw them out.
I know of several conservatives/libertarians/non-liberals whose children turned Obama supporters. They did not educate their children when they were young as to the brainwashing and propaganda of the liberals.
The truth is our most powerful weapon, with the truth we can abort Obama and his ilk in the voting booth.
JimRob dug this up and posted it here several months ago.
True, but just like any weapon it's most effective when it's used as intended. We learned the hard way with Newt and the Republican Revolution of the 90’s how that weapon can be used against you if you don't use it yourself and use it first.
Just like a fine handgun, it's only at its best when used properly. Used improperly and it becomes a weapon that is against you.
And, just like a gun, it does nothing by itself. No gun ever shot anyone without the intent of a person. The finest gun in the world is useless in a cabinet. All the truth in the world is useless unless it's wielding in the right way.
Sayings like “truth will out” are quaint and sound nice, but we found out in the 90’s just how antiquated they are in today's world.
Please don't think I am disagreeing with you! I just want to add the thought that the truth needs to be helped along!
It’s amazing how fast the Fannie Mae/Freddie Mac scandal has vanished down the memory hole. All your read in Big Media is about evil bankers and corporations. THEY!!! caused it...and not the government idiots at the GSEs. Now we are getting into a chicken or egg argument, but my question is what would this present crisis be like (or would there be a crisis?) if there were no FMs? My guess is that our current economic situation would not be as nearly severe as it is.