Lather, rinse, repeat until country is completely washed away.
Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.
Posted on 09/17/2009 5:16:49 AM PDT by reaganaut1
A number of experts believe that aggressive enforcement of the 1970s-era Community Reinvestment Act contributed to the mortgage meltdown, and thus to the greater financial crisis, by requiring financial institutions to lend to unqualified borrowers. Now, the Democratic majority in the House of Representatives is responding to that situation by proposing to expand the scope and power of the Community Reinvestment Act.
This morning House Financial Services Committee chairman Rep. Barney Frank held a hearing on H.R. 1479, the "Community Reinvestment Modernization Act of 2009." The bill's purpose is "to close the wealth gap in the United States" by increasing "home ownership and small business ownership for low- and moderate-income borrowers and persons of color." It would extend CRA's strict lending requirements to non-bank institutions like credit unions, insurance companies, and mortgage lenders. It would also make CRA more explicitly race-based by requiring CRA standards to be applied to minorities, regardless of income, going beyond earlier requirements that applied solely to low- and moderate-income areas.
Republicans on the committee strongly oppose the plan. "Instead of looking to expand the number of institutions that must abide by Community Investment Act regulations," California Rep. Ed Royce said in prepared opening remarks at today's hearing, "I think we should reassess the role this and other government mandates played in the financial collapse and consider scaling it back."
In private conversation, other Republicans were more emphatic. "There is clearly arguable evidence that the CRA is at the root of this financial meltdown," says one GOP committee member. "So what do they do? They try to expand CRA."
But Democrats, led by H.R. 1479 sponsor Rep. Eddie Bernice Johnson, claimed that expansion of CRA is much-needed. "Congress has passed a number of laws designed to combat redlining and eliminate housing discrimination," Johnson said ...
(Excerpt) Read more at washingtonexaminer.com ...
It was the fault of all the Republicans in power—including Bush and Congress—not to correctly identify the government-forced bad lending, coupled with the Greenspan-Bernanke easy money-bubble policies at the Fed, at the root of our economic crisis and decline.
We’ll keep paying for both and exacerbating both until or unless the Pubbies get a spine and some lungs to bellow out the truth.
Ya’know...some folks look at the world as it really exists. Some folks view the world through rose colored glasses. Some folks see the world through other filters. Seems to me the LibTards must be looking through grade 13 welding goggles.
They just don’t get it. They are ONLY interested in CONTROL.
It’s time to take back the country.
Along with those changes came the requirement that all HUD related entities review underwriting guidelines calling into question "minor" points such as the need for a down payment of 5% or more as well as the desirability of a clean credit history.
As a means to insure that Fannie et al were meeting this new mandate, Congress instituted a "quota" related to the annual purchase of mortgages in the portfolio that met the new affordable housing mandate. In 1994, 34% of Fannie's purchases were such qualifying mortgages. That rose to 50% by the year 2000.
As much as we may want to blame the CRA, it's really the current charter of Fannie and other HUD related entities that is the problem.
Lather, rinse, repeat until country is completely washed away.
are republicans doing anything to combat this?
Talk about being stuck on stupid!
Andrew Cuomo - How the youngest HUD Secretary in history gave birth to the mortgage crisis
Scotswife wrote: “Talk about being stuck on stupid!”
..... Barney Frank is a multi-tasker. He is simultaneously stuck on stupid, arrogant, and obtuse.
And corrupt!
Don’t forget corrupt.
That seems to be a requirement these days.
Yep, the party of FDR still can’t get a clue.
President Bush tried to rein in Fannie and Freddie many many times and was blocked by the democrats!
(snip)
Sunday, September 21, 2008
Bush Called For Reform of Fannie Mae & Freddie Mac 17 Times in 2008 Alone... Dems Ignored Warnings
For many years the President and his Administration have not only warned of the systemic consequences of financial turmoil at a housing government-sponsored enterprise (GSE) but also put forward thoughtful plans to reduce the risk that either Fannie Mae or Freddie Mac would encounter such difficulties. President Bush publicly called for GSE reform 17 times in 2008 alone before Congress acted.
Unfortunately, these warnings went unheeded, as the President’s repeated attempts to reform the supervision of these entities were thwarted by the legislative maneuvering of those who emphatically denied there were problems.
** 2001
April: The Administration’s FY02 budget declares that the size of Fannie Mae and Freddie Mac is “a potential problem,” because “financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity.”
** 2002
May: The President calls for the disclosure and corporate governance principles contained in his 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac. (OMB Prompt Letter to OFHEO, 5/29/02)
** 2003
January: Freddie Mac announces it has to restate financial results for the previous three years.
February: The Office of Federal Housing Enterprise Oversight (OFHEO) releases a report explaining that “although investors perceive an implicit Federal guarantee of [GSE] obligations,” “the government has provided no explicit legal backing for them.” As a consequence, unexpected problems at a GSE could immediately spread into financial sectors beyond the housing market. (”Systemic Risk: Fannie Mae, Freddie Mac and the Role of OFHEO,” OFHEO Report, 2/4/03)
September: Fannie Mae discloses SEC investigation and acknowledges OFHEO’s review found earnings manipulations.
September: Treasury Secretary John Snow testifies before the House Financial Services Committee to recommend that Congress enact “legislation to create a new Federal agency to regulate and supervise the financial activities of our housing-related government sponsored enterprises” and set prudent and appropriate minimum capital adequacy requirements.
October: Fannie Mae discloses $1.2 billion accounting error.
November: Council of the Economic Advisers (CEA) Chairman Greg Mankiw explains that any “legislation to reform GSE regulation should empower the new regulator with sufficient strength and credibility to reduce systemic risk.” To reduce the potential for systemic instability, the regulator would have “broad authority to set both risk-based and minimum capital standards” and “receivership powers necessary to wind down the affairs of a troubled GSE.” (N. Gregory Mankiw, Remarks At The Conference Of State Bank Supervisors State Banking Summit And Leadership, 11/6/03)
** 2004
February: The President’s FY05 Budget again highlights the risk posed by the explosive growth of the GSEs and their low levels of required capital, and called for creation of a new, world-class regulator: “The Administration has determined that the safety and soundness regulators of the housing GSEs lack sufficient power and stature to meet their responsibilities, and therefore…should be replaced with a new strengthened regulator.” (2005 Budget Analytic Perspectives, pg. 83)
February: CEA Chairman Mankiw cautions Congress to “not take [the financial market’s] strength for granted.” Again, the call from the Administration was to reduce this risk by “ensuring that the housing GSEs are overseen by an effective regulator.” (N. Gregory Mankiw, Op-Ed, “Keeping Fannie And Freddie’s House In Order,” Financial Times, 2/24/04)
June: Deputy Secretary of Treasury Samuel Bodman spotlights the risk posed by the GSEs and called for reform, saying “We do not have a world-class system of supervision of the housing government sponsored enterprises (GSEs), even though the importance of the housing financial system that the GSEs serve demands the best in supervision to ensure the long-term vitality of that system. Therefore, the Administration has called for a new, first class, regulatory supervisor for the three housing GSEs: Fannie Mae, Freddie Mac, and the Federal Home Loan Banking System.” (Samuel Bodman, House Financial Services Subcommittee on Oversight and Investigations Testimony, 6/16/04)
** 2005
April: Treasury Secretary John Snow repeats his call for GSE reform, saying “Events that have transpired since I testified before this Committee in 2003 reinforce concerns over the systemic risks posed by the GSEs and further highlight the need for real GSE reform to ensure that our housing finance system remains a strong and vibrant source of funding for expanding homeownership opportunities in America… Half-measures will only exacerbate the risks to our financial system.” (Secretary John W. Snow, “Testimony Before The U.S. House Financial Services Committee,” 4/13/05)
** 2007
July: Two Bear Stearns hedge funds invested in mortgage securities collapse.
August: President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and Freddie Mac, saying “first things first when it comes to those two institutions. Congress needs to get them reformed, get them streamlined, get them focused, and then I will consider other options.” (President George W. Bush, Press Conference, The White House, 8/9/07)
September: RealtyTrac announces foreclosure filings up 243,000 in August – up 115 percent from the year before.
September: Single-family existing home sales decreases 7.5 percent from the previous month – the lowest level in nine years. Median sale price of existing homes fell six percent from the year before.
December: President Bush again warns Congress of the need to pass legislation reforming GSEs, saying “These institutions provide liquidity in the mortgage market that benefits millions of homeowners, and it is vital they operate safely and operate soundly. So I’ve called on Congress to pass legislation that strengthens independent regulation of the GSEs – and ensures they focus on their important housing mission. The GSE reform bill passed by the House earlier this year is a good start. But the Senate has not acted. And the United States Senate needs to pass this legislation soon.” (President George W. Bush, Discusses Housing, The White House, 12/6/07)
** 2008
January: Bank of America announces it will buy Countrywide.
January: Citigroup announces mortgage portfolio lost $18.1 billion in value.
February: Assistant Secretary David Nason reiterates the urgency of reforms, says “A new regulatory structure for the housing GSEs is essential if these entities are to continue to perform their public mission successfully.” (David Nason, Testimony On Reforming GSE Regulation, Senate Committee On Banking, Housing And Urban Affairs, 2/7/08)
March: Bear Stearns announces it will sell itself to JPMorgan Chase.
March: President Bush calls on Congress to take action and “move forward with reforms on Fannie Mae and Freddie Mac. They need to continue to modernize the FHA, as well as allow State housing agencies to issue tax-free bonds to homeowners to refinance their mortgages.” (President George W. Bush, Remarks To The Economic Club Of New York, New York, NY, 3/14/08)
April: President Bush urges Congress to pass the much needed legislation and “modernize Fannie Mae and Freddie Mac. [There are] constructive things Congress can do that will encourage the housing market to correct quickly by … helping people stay in their homes.” (President George W. Bush, Meeting With Cabinet, the White House, 4/14/08)
May: President Bush issues several pleas to Congress to pass legislation reforming Fannie Mae and Freddie Mac before the situation deteriorates further.
“Americans are concerned about making their mortgage payments and keeping their homes. Yet Congress has failed to pass legislation I have repeatedly requested to modernize the Federal Housing Administration that will help more families stay in their homes, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance sub-prime loans.” (President George W. Bush, Radio Address, 5/3/08)
“[T]he government ought to be helping creditworthy people stay in their homes. And one way we can do that – and Congress is making progress on this – is the reform of Fannie Mae and Freddie Mac. That reform will come with a strong, independent regulator.” (President George W. Bush, Meeting With The Secretary Of The Treasury, the White House, 5/19/08)
“Congress needs to pass legislation to modernize the Federal Housing Administration, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance subprime loans.” (President George W. Bush, Radio Address, 5/31/08)
June: As foreclosure rates continued to rise in the first quarter, the President once again asks Congress to take the necessary measures to address this challenge, saying “we need to pass legislation to reform Fannie Mae and Freddie Mac.” (President George W. Bush, Remarks At Swearing In Ceremony For Secretary Of Housing And Urban Development, Washington, D.C., 6/6/08)
July: Congress heeds the President’s call for action and passes reform of Fannie Mae and Freddie Mac as it becomes clear that the institutions are failing.
In 2005— Senator John McCain partnered with three other Senate Republicans to reform the government’s involvement in lending.
Democrats blocked this reform, too.
The argument made by the likes of Eddie Bernice Johnson that redlining and discrimination go on is nonsense. What lending institution, especially in this age of filing discrimination lawsuits for nothing, would discriminate against legitimate borrowers on reasons of race. This woman is hallucinating.
The attempt to excuse George “bailout” Bush from this disaster doesn’t work. Fannie Freddie was only part of the problem. A key source of the problem was Bush’s constant push for low interest/loans via his “ownership society” as well as his support for Greenspan’s inflationary low interest rates.
Bush was right up there pushing the ownership society with no downpayment mortgages expressly aimed at affirmative action homeownership goals.
Sure, Fannie and Freddie were big, corrupt Democrat honeypots, but Bush was unfortunately for goosing the number of bad mortgages written just as much as the Democrats.
Blanket statements blaming President Bush are not fair either. President Bush pushed for a ‘responsible’ ownership society if you read his actual proposals and while you and I might not agree with any of it now...how many of US actually raised a big stink about it at the time?
A “responsible ownership society” can’t be created from the public teat. It has to be created by free and independent indivudals not pappa Bush (second to Obama, the most pro-big government president since FDR)
We taxpayers not only had to bail the democrats out for the last housing crash, but we're getting set up to do it again. The wanting democrat base wants free houses, and we're being forced to buy theirs before we even get our paychecks. If we don't pay all their bills first, we get an unfriendly visit from the IRS.
Only after we send in money to support the democrat base do we have money available to feed and care for our own families - and we're doing all the work!
Share the WORK, democrats, so the wealth can share itself. If the democrat base wants more stuff, tell them to get their own jobs. If they want a house, tell them to buy their own.
No man should be used as another mans slave. Go Galt.
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