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Cuomo's HUD career under scrutiny
Buffalo News ^ | May 30, 2010 | Phil Fairbanks

Posted on 06/24/2010 5:47:54 AM PDT by reaganaut1

Andrew Cuomo promised to "transform the lives of millions of families across our country" when as HUD secretary he announced his historic plan to increase home ownership.

Eleven years later, many experts think that much-heralded transformation played a role in the devastating subprime mortgage meltdown and the worst economic downturn since the Great Depression.

"They should have known the risks were large," said Edward J. Pinto, former chief credit officer at Fannie Mae. "Cuomo was pushing mortgage bankers to make loans and basically saying you have to offer a loan to everybody."

Pinto argues that Cuomo, now running for governor of New York, helped create the framework for the subprime crisis by pushing unrealistic and irresponsible affordable housing goals as head of the U.S. Department of Housing and Urban Development.

"He was a contributor in terms of him being a cheerleader, but I don't think we can pin too much blame on him," Dean Baker, co-director of the Center for Economic and Policy Research, said of Cuomo's role in the subprime crisis.

Baker sees Cuomo as a contributor because he advocated a philosophy that almost everyone should be able to own a home. And yet, he thinks others, most notably mortgage lenders and brokers, were the real culprits.

The debate over Cuomo's culpability in the subprime crisis has its roots in his eight-year record at HUD, most notably his role in:

• New requirements that Fannie Mae and Freddie Mac, two of the nation's largest finance companies, expand their purchase of mortgages held by low- and moderate-income homebuyers.

• A reform that allowed Fannie and Freddie to receive affordable-housing credit for buying private subprime mortgage-backed securities.

• Increased loan ceilings and looser underwriting standards at the Federal Housing Administration.

• President Bill Clinton's National Homeownership Strategy

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


TOPICS: Government; US: New York
KEYWORDS: andrewcuomo; cuomo

1 posted on 06/24/2010 5:47:56 AM PDT by reaganaut1
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To: reaganaut1

None of the record matters to New Yorkers; they want another Cuomo, and nothing can stop them. Ditto CA and their Jerry Brown


2 posted on 06/24/2010 5:51:36 AM PDT by Theodore R.
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To: reaganaut1

None of the record matters to New Yorkers; they want another Cuomo, and nothing can stop them. Ditto CA and their Jerry Brown


3 posted on 06/24/2010 5:51:39 AM PDT by Theodore R.
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To: reaganaut1

‘Bout time


4 posted on 06/24/2010 5:53:03 AM PDT by CPT Clay (Pick up your weapon and follow me.)
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To: Theodore R.

We NYers will get il Duce II because the GOP is running a handful of jello against him.


5 posted on 06/24/2010 5:55:20 AM PDT by wtc911 ("How you gonna get down that hill?")
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To: reaganaut1
This should be on the national news instead of a local newspaper.

Sounds more like a public inoculation rather than a full fledged investigation.

6 posted on 06/24/2010 5:55:28 AM PDT by PeaRidge
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To: reaganaut1

Where is the Barrett report?


7 posted on 06/24/2010 5:55:55 AM PDT by MileHi ( "It's coming down to patriots vs the politicians." - ovrtaxt)
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To: reaganaut1

Always concerned about ex Fannie and Freddie people like Pinto and Arnold Kling who made millions while working at the GSEs and now want to go on record (AFTER they made millions) to expose the hypocrisy.

Hey Pinto and Kling, you knew it was wrong when you worked there and you said nothing but cash your huge checks. Sod off.


8 posted on 06/24/2010 5:56:53 AM PDT by whitedog57
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To: wtc911

Unfortunately you’re right! Notice no one asks after the missing billions from HUD that went “poof!” during his tenure.


9 posted on 06/24/2010 7:15:11 AM PDT by rex regnum insanit (falsus in uno, falsus in omnibus)
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