Skip to comments.Warren: Don't 'scapegoat' affordable housing in reform push
Posted on 10/29/2013 9:21:23 PM PDT by Tailgunner Joe
Sen. Elizabeth Warren (D-Mass.) mounted a spirited defense of affordable housing goals on Tuesday as she laid out her vision for overhauling the housing market.
In her first public remarks on housing finance reform, Warren laid out her vision for overhauling the system after the subprime meltdown, and emphasized that Congress should ensure mortgages remain affordable across the middle class, calling it the "centerpiece of the American Dream."
Appearing before the Mortgage Bankers Association, Warren said affordable housing goals, long pointed to by conservatives as a driving force in the creation of the risky mortgages that sunk the system, had nothing to do with the crisis "not even a little bit."
"Affordable housing goals have been scapegoated by those who have been itching to get rid of the goals for a long time, but I think it's time to drop that red herring," she said, according to prepared remarks.
Click here to find out more! Warren admitted that Fannie and Freddie made "significant mistakes" in the years leading up to the crisis, driven by a desire to drive up value for shareholders. But she said the bulk of the blame should lie at the feet of private mortgage originators, who began doling out risky mortgages and "making money hand-over-fist," enticing Fannie and Freddie to begin bringing more and more risk into their portfolios.
As part of any reform effort, Warren said the government should replace the implicit government guarantee previously enjoyed by Fannie and Freddie with an explicit one that ensures that private capital would bear the brunt of any initial losses. She argued there is no "plausible scenario" where a U.S. housing market can thrive without such government backing.
She also said any housing reforms would need to come with sufficient regulations of the marketplace, both to ensure that a slew of dangerous loans do not again flood the marketplace and also to ensure that large financial institutions do not enjoy an unfair advantage that could allow them to further grow and cement their status as "too big to fail."
Warren offered kind words for a bipartisan bill put forward by her colleagues on the Banking Committee, Sens. Mark Warner (D-Va.) and Bob Corker (R-Tenn.), but added she did not see it as a "perfect bill."
"Housing finance reform is a complex puzzle, and it will take a lot of work from a lot of people to make sure the pieces fit correctly," she said.
As if anyone really cares what Princess White Woman of Color With High Cheekbones has to say. She’s a ditz.
This women is hideous.
Reform = government takeover.
As I recall, the bank were forced by the government to make financially risky mortgages.
This time when the liars loan mortgagees default, they won’t make them move. The mortgage will be government owned and they will just keep living in the houses they have stopped paying for. Section 8,
2.0. Bank on it.
This time when the liar’s loan mortgagees default, they wont make them move. The mortgage will be government owned and they will just keep living in the houses they have stopped paying for. Section 8, version 2.0. Bank on it.
The one thing the government could do to ensure affordable housing is to remove the regulations that make it so difficult for builders to build affordable housing.
That, of course, is not going to happen. The government doesn’t want truly affordable housing, they want government-controlled housing.
Affordable Housing - somebody else helps you pay for your house.
Senator Squaw want more affordable teepees for black and white palefaces.
Well they have finally gotten all the inequities and inefficiencies out of the Medical System. It’s time to tackle that other great Human Right, Housing. All it needs to be made eminently fair is for the Government to straighten it out. When that gets fixed then it will be time to fix the food distribution mess which will help with the overpopulation problem at the same time.
I seem to recall it was gummint takeover of the housing market that led to the collapse in 2007... It might help to remember this as the gummint tries to takeover the healthcare market.
The fake injun skank speaks - - and again shows she hasn't the faintest clue.
Please do not underestimate this fiend. She is actually the biggest threat to a 2016 Hillary run for POTUS.
The communists in our country actively support her candidacy for president in 2016, and she will have tremendously strong backing from the media. She would be a totalitarian nightmare and we cannot judge by her incompetence alone - that is a valid reason for support from the left. She is a major threat.
You are correct. Hillary is a dried up prune with a ton of baggage. Warren is loved by the left. Electing Obama has shown they care nothing for experience and ability. Ideology trumps all.
They’ve got healthcare, now housing is the next target.
You’d think both political parties would’ve given up on nominating MA pols by now.
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