Posted on 12/08/2011 7:38:20 AM PST by E. Pluribus Unum
Full Title: Government Pamphlet Taught Banks How To Finance A $70,000 Home With A $500 Downpayment
A government publication offering banks guidance on "community development" urged banks to offering low-income borrowers loans with many of the features now deplored as irresponsible and lax lending. The two-volume set uncovered by Clusterstock was titled EFFECTIVE STRATEGIES FOR COMMUNITY DEVELOPMENT FINANCE/COMMUNITY DEVELOPMENT RESOURCE GUIDE.
(Excerpt) Read more at articles.businessinsider.com ...
Link to actual HUD PDF file: Effective Strategies for Community Development Finance
Interesting...thanks for posting.
I just closed a mortgage loan Monday.
I still can’t sit properly from the in depth examination and I have perfect credit, a low debt to income ratio and 25% down.
It was truly the most brutal financial examination experience I’ve ever endured.
My Top Secret/SSBI investigation wasn’t that thorough.
It is official federal government policy to punish the innocent and reward the guilty.
Did you happen to catch Rush’s last caller yesterday? She explained “instant credit recovery,” and how it made it possible for totally unqualified people to get mortgages.
I heard her. It’s why I remembered this article. The fact is that HUD/Treasury actively required banks to commit mortgage fraud.
Cuomo’s Social Engineering as HUD Chief Contributed to Subprime Crisis / originally published on Examiner.com
As many Americans across this great land continue to struggle with the loss of their homes, savings and retirement resources, those that were complicit in not regulating the government sponsored enterprises (GSEs) in the second market namely Fannie Mae and Freddie Mac causing the subprime loans to detonate are jockeying for power.
Sadly, we are giving those same culprits the honor of office through our votes.
Note: the use of the term ‘we’ and ‘our’ is a reference to the electorate and not suggestive of the voting record of the author.
In 1993 President Bill Clinton appointed Andrew Cuomo (now NY state governor) to the Department of Housing and Urban Development (HUD) as Assistant Secretary.
In 1997 Cuomo took over as HUD chief replacing Clinton appointee Henry Cisneros. During Cisneros tenure he championed Clinton’s goal of social engineering within the housing market forcing lenders to issue loans to those that would not financially qualify for the lending.
Cisneros left office in a scandal involving lying to the FBI over payouts to a mistress, Cisneros subsequently pleaded guilty to a misdemeanor and though never sent to prison received a pardon from Bill Clinton in 2001.
Andrew Cuomo took the reins and not only furthered Cisneros and Clinton’s policies but greatly expanded them.
Henry Cisneros moved the GSEs toward a requirement that 42 percent of their mortgages serve low and moderate income families. Andrew Cuomo raised that number to 50 percent and dramatically hiked GSE mandates to buy mortgages for the “very-low-income.”
These bad loans were purchased and sold throughout the secondary market and the pyramid grew and the bottom collapsed resulting in the subprime crisis we are still reeling from today.
In 2008, the Village Voice published a compelling report detailing Andrew Cuomo’s policy decisions “that gave birth to the country’s current crisis.”
The report touched on how Cuomo’s 187-page rules “opened the door to abuse.” The rules explicitly rejected the idea of imposing any new reporting requirements on the GSEs. In other words, HUD wanted Fannie and Freddie to buy risky loans, but the department didn’t want to hear just how risky they were.
Many New York voters have been distracted by the gubernatorial candidate Carl Paladino’s racist joke email forwards, what some are failing to see is the actual harm to the minority community directly caused by Cuomo’s policies...and that is no laughing matter.
Cuomo’s top aide said, “We believe that there are a lot of loans to black Americans that could be safely purchased by Fannie Mae and Freddie Mac if these companies were more flexible.”
Andrew Cuomo doubled down and had this to say about his HUD standards, “GSE presence in the subprime market could be of significant benefit to lower-income families, minorities, and families living in underserved areas.”
How’s that working out for the minority community, where foreclosures and unemployment rates have hit the hardest as a result of such failed policies and blatant social engineering?
http://voices.yahoo.com/cuomos-social-engineering-as-hud-chief-contributed-7077218.html
The scariest thing WRT Andrew Cuomo’s adventures in HUDland——is that everytime the governor gets before a mic, his face contorts into a leer that says: “All my actions are to further my naked ambition to be president to makeup for my father’s losing the chance.”
He has the face of a serial killer. I’m serious. He looks like Ted Bundy. Curtis Sliwa calls him Andrew “Evil Eyes” Cuomo.
Thank you for re-outting the guilty. Cuomo, Cisneros, Frank, et al., create utter disasters, then get a free pass, or move on to bigger things.
Since the US Constitution grants the federal government no powers regarding “HUD”, this department has no legal basis for existence. The agenda of the next President should include pulling the handle.
No question-——a very scary individual.
His “president-wannabee” leer is frightening.
No question-——a very scary individual.
His “president-wannabee” leer is frightening.
How many bought homes in formerly redlined areas with little or nothing down, only to flip them as prices went up with demand or to extract cash from the increased value (now "equity") by using a Home Equity Loan or line of credit to walk away with a wad of green?
Do you honestly think Americans (outside of crazy NYers - my peeps) would vote for this creep? That’s a really scary thought!
I am still pissed at many ion the campaign that this message did not get out. We should have pushed and pushed it more but the media avoided it and crowned Cuomo king. We stood little chance of exposing more of it but the effort to do so should have been greater..
Clinton and Obama were elected.
True; but on some level, they showed charm (I know, I know, we don’t see it). Cuomo on the other hand has all the charm of a rattlesnake. Truly an unappealing man. And his girlfriend is the worst cook in America, lol.
Cuomo did a horrible job with HUD, but NYers voted for him anyway. They obviously don’t do enough research which is why I write letters to the editor, and call local talk shows, to inform as many people as I can in my own little way.
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