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Clinton Library's Doc Dump Reveals CRA Fueled Subprime Bubble
Investor's Business Daily ^ | April 25, 2014 | Masthead Editorial

Posted on 04/26/2014 5:21:06 PM PDT by neverdem

Subprime Scandal: Newly released memos from the Clinton presidential library reveal evidence the government had a big hand in the housing crisis. The worst actors were in the White House, not on Wall Street.

During the 1990s, former Clinton aides bragged that more aggressive enforcement of the Community Reinvestment Act pressured banks to issue riskier mortgages, lending more proof the anti-redlining law fueled the crisis.

A 2012 National Bureau of Economic Research study found "that adherence to that act led to riskier lending by banks," with "a clear pattern of increased defaults for loans made by these banks in quarters around the (CRA) exam, (and) the effects are larger for loans made within CRA tracts," or low-income and minority areas.

To satisfy CRA examiners, Clinton mandated "flexible" lending by large banks. As a result, CRA-approved loans defaulted about 15% more often, the NBER found. Exhibit A in the 7,000-page Clinton Library document dump is a 1999 memo to him from his treasury secretary, Robert Rubin.

"Public disclosure of CRA ratings, together with the changes made by the regulators under your leadership, have significantly contributed to ... financial institutions ... meeting the needs of low- and moderate-income communities and minorities," Rubin gushed. "Since 1993, the number of home mortgage loans to African Americans increased by 58%, to Hispanics by 62% and to low- and moderate-income borrowers by 38%, well above the overall market increase...

(Excerpt) Read more at news.investors.com ...


TOPICS: Business/Economy; Crime/Corruption; Editorial; Politics/Elections
KEYWORDS: 2008crash; billclinton; clintonlibrary; clintonsfault; cra; cuomo; greatrecession; housingbubble
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1 posted on 04/26/2014 5:21:06 PM PDT by neverdem
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To: neverdem

Name a crisis the government hasn’t ultimately caused.


2 posted on 04/26/2014 5:23:16 PM PDT by headstamp 2 (What would Scooby do?)
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To: neverdem

Hmmm, only took what 5.5 years to figure it out.

Funny, some of us knew how this came down on day one.


3 posted on 04/26/2014 5:24:33 PM PDT by DoughtyOne (Immigration Reform is job NONE. It isn't even the leading issue with Hipanics. Enforce our laws.)
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To: DoughtyOne

Hmmm, only took what 5.5 years to figure it out.

Funny, some of us knew how this came down on day one.

This, of course, will have no bearing on Hillary's aspirations.

I remember in the mid 90s when leaks from the Clinton White House confirmed the Crash-Protection-Program, where they'd push/pull the bond market whenever they had to.

Utterly corrupt pigs, to the last.

4 posted on 04/26/2014 5:30:30 PM PDT by IncPen (When you start talking about what we 'should' have, you've made the case for the Second Amendment)
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To: neverdem

Didn’t we already know that?


5 posted on 04/26/2014 5:31:06 PM PDT by ilovesarah2012
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To: neverdem

We already knew that.

What I want to know is why Sandy Burglar stole top-secret documents and altered/destroyed them.

Waterboard that lying POS until we get to the truth.


6 posted on 04/26/2014 5:32:30 PM PDT by Ghost of Philip Marlowe (Prepare for survival.)
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To: neverdem

I’d be surprised if the Hildebeast was not close to the nerve center of this operation.


7 posted on 04/26/2014 5:33:09 PM PDT by SharpRightTurn (White, black, and red all over--America's affirmative action, metrosexual president.)
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To: neverdem

I know a banker who told me he came home every night when this was getting going, took his shirt off, threw it down, and took a shower, just to try to get the stink off of what was being done with CRA-p.


8 posted on 04/26/2014 5:33:46 PM PDT by combat_boots (The Lion of Judah cometh. Hallelujah. Gloria Patri, Filio et Spiritui Sancto!)
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To: neverdem

Knew this back in 2008.


9 posted on 04/26/2014 5:35:53 PM PDT by Blood of Tyrants (Haven't you lost enough freedoms? Support an end to the WOD now.)
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To: neverdem

10 posted on 04/26/2014 5:36:03 PM PDT by Jacquerie (By their oaths, it is the duty of state legislators to invoke Article V.)
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To: neverdem

I have a question. What stops documents like these from being destroyed?

It would seem to me that, if I were a politician intent on doing something that I could potentially go,to jail for, I would be operating under verbal agreements and handshakes.


11 posted on 04/26/2014 5:36:23 PM PDT by Jonty30 (What Islam and secularism have in common is that they are both death cults)
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To: IncPen
This, of course, will have no bearing on Hillary's aspirations.

I have lib relatives that, in spite of the state of our current economy, still support 0 and plaster Hitlery for Prez on their FB accounts. Their insurance coverages have suffered (Medicare docs and Rx's), yet they continue to support the sinking ship.

12 posted on 04/26/2014 5:38:06 PM PDT by Jane Long (While Marxists continue the fundamental transformation of the USA, progressive RINOs assist!)
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To: DoughtyOne

It’s not so much that it took so long to figure it out, as for contemporary, direct evidence/proof of it from Clinton Admin sources to emerge.


13 posted on 04/26/2014 5:38:11 PM PDT by tanknetter
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To: Jonty30

It’s not that they did anything illegal. Just sleazy. The type of stuff that intelligent Americans would tar and feather politicians far.

Unfortunately, there are too many Democrats in America who simply don’t care as long as they get their monthly benefits what’s happening.


14 posted on 04/26/2014 5:38:26 PM PDT by Bogey78O (We had a good run. Coulda been great still.)
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To: Jonty30
It would seem to me that, if I were a politician intent on doing something that I could potentially go,to jail for, I would be operating under verbal agreements and handshakes.

Or, hiding things in Sandy Burgler's pants.

15 posted on 04/26/2014 5:40:45 PM PDT by Jane Long (While Marxists continue the fundamental transformation of the USA, progressive RINOs assist!)
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To: Nachum

Ping


16 posted on 04/26/2014 5:41:59 PM PDT by Jet Jaguar (Resist in place.)
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To: Jane Long

All the hallmarks of a religious cult.


17 posted on 04/26/2014 5:44:55 PM PDT by MileHi
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To: IncPen

I agree.


18 posted on 04/26/2014 5:46:58 PM PDT by DoughtyOne (Immigration Reform is job NONE. It isn't even the leading issue with Hipanics. Enforce our laws.)
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To: neverdem

“Hi. I’m Hillary Clinton and I’m running for president. I’m qualified because I was married to Bill Clinton when he was president.”

“Mrs. Clinton. It’s now been proven that your husband was responsible for the home mortgage crash.”

“Don’t blame that on me.”


19 posted on 04/26/2014 5:47:45 PM PDT by VerySadAmerican
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To: tanknetter

They should have been able to find that evidence in about an hour after the collapse. You could good Obama and see where he was a litigant forcing lending institutions to give bad loans. Everyone in government gets a free ride.

Note that guys all wall street though. They were the real criminals. Bankers, lending institutions, all trashed as if they cause the problem.

Capital Hill baby, they and all their cronies doing what came naturally. Not a one of them getting any pushback whatsoever.


20 posted on 04/26/2014 5:49:52 PM PDT by DoughtyOne (Immigration Reform is job NONE. It isn't even the leading issue with Hipanics. Enforce our laws.)
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To: tanknetter

Lets try that again. Sheesh.

They should have been able to find that evidence in about an hour after the collapse. You could Google Obama and see where he was a litigant forcing lending institutions to give bad loans. Everyone in government gets a free ride.

Note that they all blamed Wall Street though. They were the real criminals. Bankers, lending institutions, all trashed as if they caused the problem.

Capital Hill baby, they and all their cronies doing what came naturally. Not a one of them getting any push-back whatsoever.


21 posted on 04/26/2014 5:52:00 PM PDT by DoughtyOne (Immigration Reform is job NONE. It isn't even the leading issue with Hipanics. Enforce our laws.)
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To: VerySadAmerican

that’s about it isn’t it


22 posted on 04/26/2014 5:52:22 PM PDT by DoughtyOne (Immigration Reform is job NONE. It isn't even the leading issue with Hipanics. Enforce our laws.)
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To: VerySadAmerican

she was in the command position on Waco the day of the burn-out


23 posted on 04/26/2014 5:52:43 PM PDT by DoughtyOne (Immigration Reform is job NONE. It isn't even the leading issue with Hipanics. Enforce our laws.)
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To: neverdem

The Clinton Library..., the first double wide in presidential library history.


24 posted on 04/26/2014 5:59:10 PM PDT by DoughtyOne (Immigration Reform is job NONE. It isn't even the leading issue with Hipanics. Enforce our laws.)
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To: neverdem

Geez, all this time I thought the republicans drove the country into a ditch.


25 posted on 04/26/2014 6:03:57 PM PDT by umgud
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To: IncPen
This, of course, will have no bearing on Hillary's aspirations.

The Co-President will claim a share of the credit for any perceived accomplishments, and deny any responsibility for the failures.

26 posted on 04/26/2014 6:05:00 PM PDT by tacticalogic
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To: neverdem

I’m no fan of Clinton, but if the government told me that I had to lend money to people that had NO CHANCE OF EVER PAYING IT BACK, I would tell the government to take a hike and throw me in jail.

But Countrywide and the other banks just saw HUGE REVENUE while the gravy train was running and could not GIVE A DAMN about the crash that was certain to happen.

It didn’t take a genius to figure out what was going on, it only took a quick comparison of average incomes versus average prices of houses being sold. Additionally, ANYONE WITH ACCESS could have pulled the paper for some of the loans and compared loan amounts to verified income levels (at least for the loads that they bothered to check income levels on, which were not many at the end) and it was NOT HARD to see what was going on, not hard at all. I even bought a nice car by shorting Countrywide and a few other IDIOT lenders back then - the only time I’ve ever made money in stocks, by the way.


27 posted on 04/26/2014 6:10:47 PM PDT by BobL
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To: neverdem
Both Bill Clinton and Barney Frank are culpable for the looting of America's wealth through corrupt mortgages.

The economic depression the country is in today is the direct result of corrupt mortgage lending Congress required. Many banks were destroyed by it already. America's financial survival now hangs by a thread.

So Bill and Barney, where did all the money go? Somebody got it.

28 posted on 04/26/2014 6:22:11 PM PDT by Rapscallion (Obama stands for the corruption of America in all aspects.)
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To: neverdem
Community Reinvestment Act pressured banks to issue riskier mortgages, lending more proof the anti-redlining law fueled the crisis.

This is news? I hope I'm not the only one who saw this coming.

29 posted on 04/26/2014 6:29:30 PM PDT by upchuck (Support ABLE, the Anybody But Lindsey Effort. Yes, we are the ABLE!!)
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To: neverdem
no money down, interest only loans to uneducated low income workers with no or bad credit history for more money than thy could pay back in two lifetimes, what could possible go wrong???
30 posted on 04/26/2014 6:33:04 PM PDT by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -vvv- NO Pity for the LAZY - 86-44)
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To: Jane Long

“I have lib relatives that...still support O and plaster Hitlery for Prez....”

It’s absolutely amazing that they’ll still say that it’s someone else’s fault.

(My lib relatives are irritatingly the same.)

IMHO


31 posted on 04/26/2014 7:05:22 PM PDT by ripley
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To: neverdem

CRA was a catalyst. But the banks realized they could make higher risk loans to everybody, and they did.

Lots of money to be made at the front end, then sell the loans off. Who cares who gets stuck with the bad loans, later?


32 posted on 04/26/2014 7:11:22 PM PDT by truth_seeker
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To: neverdem

This is an “NSS” (no sh*t, Sherlock) revelation.

CRA pushed the banks to lend to weak borrowers; increased demand pushed up prices, making the loans even riskier; securitization let the lenders offload them on Fannie and Freddie, as well as institutional investors worldwide.

The best book I read on the 2008 disaster was “The Sellout”, by Charles Gasparino. “The Big Short” by Michael Lewis is also good, but doesn’t provide as much background.


33 posted on 04/26/2014 7:12:25 PM PDT by Pearls Before Swine
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To: neverdem
Those with a sense of integrity and an IQ over 80 have known this since the dawn of the subprime crisis.Now we see it from BillyBob’s very own records.This might make for some interesting questions for the former Twelfth Lady during the upcoming campaign.
34 posted on 04/26/2014 7:42:54 PM PDT by Gay State Conservative (Stalin Blamed The Kulaks,Obama Blames The Tea Party)
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To: neverdem

Ob sued Citibank under CRA to force it to issue subprime loans and created thereby not only bad loans, but enhanced the numbers of mortgages securitised by the banks, which with no title transfers done with the securitisations, were sold to Fannie and Freddie in the Executive Branch of govt. where they remain today,over a trillion of which were bought and continue to be bought from Fannie and Freddie to the tune of $35-45B a month since Sept. of 2012.

http://www.mediacircus.com/2008/10/obama-sued-citibank-under-cra-to-force-it-to-make-bad-loans/

UPDATED: Obama Sued Citibank Under CRA to Force it to Make Bad Loans

Posted on 03 October 2008

Do you remember how we told you that the Democrats and groups associated with them leaned on banks and even sued to get them to make bad loans under the Community Reinvestment Act which was a factor in causing the economic crisis (see HERE ) … well look at what some fellow bloggers have dug up while researching Obama’s legal career. Looks like a typical ACORN lawsuit to get banks to hand out bad loans.

In these lawsuits, ACORN makes a bogus claim of Redlining (denying poor people loans because of their ethnic heritage). They protest and get the local media to raise a big stink. This stink means that the bank faces thousands of people closing their accounts and get local politicians to lobby to stop the bank from doing some future business, expansions and mergers. If the bank goes to court, they will win, but the damage is already done because who is going to launch a big campaign to get the bank’s reputation back?

It is important to understand the nature of these lawsuits and what their purpose is. ACORN filed tons of these lawsuits and ALL of them allege racism.

Thanks to the IUSB Vision Weblog for providing additional details of this story.

We pulled the docket down, but here’s a brief for your summary:

Case Name
Buycks-Roberson v. Citibank Fed. Sav. Bank Fair Housing/Lending/Insurance
Docket / Court 94 C 4094 ( N.D. Ill. ) FH-IL-0011
State/Territory Illinois
Case Summary
Plaintiffs filed their class action lawsuit on July 6, 1994, alleging that Citibank had engaged in redlining practices in the Chicago metropolitan area in violation of the Equal Credit Opportunity Act (ECOA), 15 U.S.C. 1691; the Fair Housing Act, 42 U.S.C. 3601-3619; the Thirteenth Amendment to the U.S. Constitution; and 42 U.S.C. 1981, 1982. Plaintiffs alleged that the Defendant-bank rejected loan applications of minority applicants while approving loan applications filed by white applicants with similar financial characteristics and credit histories. Plaintiffs sought injunctive relief, actual damages, and punitive damages.

U.S. District Court Judge Ruben Castillo certified the Plaintiffs’ suit as a class action on June 30, 1995. Buycks-Roberson v. Citibank Fed. Sav. Bank, 162 F.R.D. 322 (N.D. Ill. 1995). Also on June 30, Judge Castillo granted Plaintiffs’ motion to compel discovery of a sample of Defendant-bank’s loan application files. Buycks-Roberson v. Citibank Fed. Sav. Bank, 162 F.R.D. 338 (N.D. Ill. 1995).

The parties voluntarily dismissed the case on May 12, 1998, pursuant to a settlement agreement.
Plaintiff’s Lawyers Alexis, Hilary I. (Illinois)
FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000
Childers, Michael Allen (Illinois)
FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000
Clayton, Fay (Illinois)
FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000
Cummings, Jeffrey Irvine (Illinois)
FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000
Love, Sara Norris (Virginia)
FH-IL-0011-9000
Miner, Judson Hirsch (Illinois)
FH-IL-0011-7500 | FH-IL-0011-9000
Obama, Barack H. (Illinois)
FH-IL-0011-7500 | FH-IL-0011-7501 | FH-IL-0011-9000
Wickert, John Henry (Illinois)
FH-IL-0011-9000

UPDATE : Hotair.com comments on this story HERE .

New York Post Article HERE :

THE seeds of today’s financial meltdown lie in the Community Reinvestment Act – a law passed in 1977 and made riskier by unwise amendments and regulatory rulings in later decades.

CRA was meant to encourage banks to make loans to high-risk borrowers, often minorities living in unstable neighborhoods. That has provided an opening to radical groups like ACORN (the Association of Community Organizations for Reform Now) to abuse the law by forcing banks to make hundreds of millions of dollars in “subprime” loans to often uncreditworthy poor and minority customers.

Any bank that wants to expand or merge with another has to show it has complied with CRA – and approval can be held up by complaints filed by groups like ACORN.

In fact, intimidation tactics, public charges of racism and threats to use CRA to block business expansion have enabled ACORN to extract hundreds of millions of dollars in loans and contributions from America’s financial institutions .

The Woods Fund report makes it clear Obama was fully aware of the intimidation tactics used by ACORN’s Madeline Talbott in her pioneering efforts to force banks to suspend their usual credit standards. Yet he supported Talbott in every conceivable way. He trained her personal staff and other aspiring ACORN leaders, he consulted with her extensively, and he arranged a major boost in foundation funding for her efforts.

And, as the leader of another charity, the Chicago Annenberg Challenge, Obama channeled more funding Talbott’s way – ostensibly for education projects but surely supportive of ACORN’s overall efforts.


35 posted on 04/26/2014 7:57:13 PM PDT by givemELL (Does Taiwan eet the Criteria to Qualify as an "Overseas Territory of the United States"? by Richar)
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To: neverdem
The Village Voice wrote about this in 2008 describing the role HUD and its secretary Andrew Cuomo played:

http://www.villagevoice.com/2008-08-05/news/how-andrew-cuomo-gave-birth-to-the-crisis-at-fannie-mae-and-freddie-mac/

36 posted on 04/26/2014 9:10:40 PM PDT by Brad from Tennessee (A politician can't give you anything he hasn't first stolen from you.)
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To: neverdem

Surprise, surprise......


37 posted on 04/26/2014 9:43:57 PM PDT by Intolerant in NJ
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To: neverdem

In spite of this coming out,The new democrat darling,Elizabeth Warren,the phony Indian is running around screeching someone should have gone to jail for the banking crisis that caused the housing collapse,this just shows how brazen and confident the Marxists are in knowing the press will not expose the truth and the Republicans are worse because of their total incompetence in explaining what most of us here have know for years.
When I brought this up years ago to my Democrat relatives I was laughed at as well,these Clinton papers will just be looked at as another right wing plot to smear Hillary


38 posted on 04/27/2014 3:09:43 AM PDT by ballplayer
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To: All
Clinton and F/M CEO appointee Franklin Raines.

GENESIS OF THE SUB-PRIME BILKING OF TAXPAYERS
Clinton appointee, Fannie Mae CEO Franklin Raines, Pens a Letter to Shareholders
excerpted from Raines 2003 Fannie Mae Annual Report

Excerpt ...Ten years ago the typical conforming mortgage required a down payment of 10-20%, and low-down payment mortgages were considered too risky. But then we helped to standardize the 3-5% down payment loan, brought it to global capital markets, and made it available to lenders and communities nationwide. Now low-down payment loans are commonplace. And we just adopted a new variance in our underwriting standards that will make the $500 down payment loan widely available as well...

In 1994, we pledged to provide $1 trillion in capital to ten million underserved families by the end of 2000. Thanks to our housing and industry partners, we met that goal early.

Then in 2000, we launched our American Dream Commitment, a pledge to provide $2 trillion in capital to 18 million underserved families by the year 2010, including $400 billion targeted specifically for minority families (later raised to $700 billion in response to President Bush’s Minority Homeownership Initiative). After four of the strongest years in housing and mortgage finance history, we’ve already surpassed the top-line goals of this commitment. But our work is far from complete.

So in January 2004, we announced our Expanded American Dream Commitment and pledged significant new resources to tackle America’s toughest housing challenges. Our new commitment has three main goals.

First, we will expand access to homeownership for six million first-time home buyers in the next ten years, including 1.8 million minority first-time home buyers.We also will help raise the national minority homeownership rate from 49 percent to 55 percent, with the ultimate goal of closing it entirely.

Second, we will help new and long-term homeowners stay in their homes through a series of initiatives, and commit $15 billion to preserve affordable rental housing and $1.5 billion to support the revitalization of public housing communities.

Third, we will increase the supply of affordable housing and support community development activities in at least 1,000 neighborhoods across the country through our American Communities Fund, and through targeted investments like Low-Income Housing Tax Credits that help finance affordable rental housing.

It is because of initiatives like our Trillion Dollar Commitment and our American Dream Commitment that we have exceeded our HUD affordable housing goals for ten consecutive years. (End Raines excerpt.) (NOTE Raines is a Clinton appointee)

===============================================

NOTE: Raines was fired for being a crook---cooking the books to get bonuses. But he walked away a multi-millionaire---extorting millions from taxpayers for pensions, bonuses, lifetime healthcare, donations to his fave charites....etc, etc, and so on, and so forth, ad infinitum ad nauseaum.

39 posted on 04/27/2014 3:53:48 AM PDT by Liz
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To: All
POLS READY TO CASH-IN BIGTIME: Last year, Obama said it’s time to ‘turn the page’ on Fannie and Freddie
MarketWatch | 7/24/13 | MarketWatch / FR Posted by illiac

Obama's speech on the US economy spelled out the beginning of the end for federally-controlled mortgage buyers Fannie Mae and Freddie Mac. “We’ll work with both parties to turn the page on Fannie and Freddie, and build a housing finance system that’s rock-solid for future generations,” Obama said, according to a copy of his prepared remarks

The House Financial Services Committee approved a bill on Tuesday that would get rid of the firms in five years, to be replaced by a National Mortgage Market Utility to help securitize mortgages.(Excerpt) Read more at blogs.marketwatch.com

ADDENDUM---what Obama left out of his remarks Wall Street Journal report on page A15---article entitled “Treasury’s Fannie Mae Heist“.

WSJ: The Federal government is seizing the substantial profits of the government-chartered mortgage firms, Fannie Mae and Freddie Mac, taking for itself the property and potential gains of private investors the government induced to help prop up these companies. This conduct is intolerable.” A scathing article follows--a must read.

40 posted on 04/27/2014 3:54:34 AM PDT by Liz
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To: All
MASSIVE MORTGAGE FRAUD ON CAPITOL HILL---TAXPAYERS GET SOCKED A 2009 Wall Street Journal investigative reported that the subprime mortgage borrowing spree that wreaked havoc on the US economy revealed----according to the Federal Financial Institutions Examination Council---financial schemes by low-income housing groups, Hispanic lawmakers on Capitol Hill, including a congressional Hispanic housing initiative, subprime mortgage lenders and brokers, colluded in fraudulent schemes to increase homeownership among Latinos using falsified applications, and other tricks of the trade.

The massive mortgage fraud ended in disaster for which no one has been held responsible. Taxpayers got saddled with billions of dollars in bailout bills.

These subprime activities were not simply the mortgage market at work. They were fueled by avarice, greed, stupidity--all enabled by Congressmen and other groups which leave a trail at the door of then-Cong Joe Baca (D-Cali). The subprime mortgage bank fraud network was spearheaded by then-Cong Joe Baca (D-Calif 43rd), in his powerful position as chairman of the Congressional Hispanic Caucus. Baca's district ranks No.5 among all US Congressional districts in percentage of home loans tailored to sub-prime borrowers.

Baca used tax resources, the legislative power of his office and his leadership position in the Congressional Hispanic Caucus to calculatedly launch a housing initiative called "HOGAR"-- Spanish for home. Then-Cong Baca calculatedly hyped the fact that the national Latino homeownership rate was 47%, compared with 68% for the overall population.

HOGAR was coached to call the figure "alarming," and to say "a concerted effort was required to ensure that by the end of the decade Latinos will share equally in the American Dream of home ownership." HOGAR and then-Cong Baca conned the public, failing to note that most of the "dreamers" were illegals, citizens of Third World countries who had violated US borders.

Predictably, HOGAR colluded w/ co-conspirators which included:

(a) shaky mortgage companies that ran into big trouble;

(b) Fannie Mae and Freddie Mac, both now under federal control after billions in taxpayer bailouts;

(c) Countrywide Financial Corp., sold to Bank of America Corp;

(d) Washington Mutual Inc., taken over by the US government and sold to J.P. Morgan Chase & Co.; and,

(e) New Century Financial Corp. and Ameriquest Mortgage Corp, both now defunct, killed by defaulted subprime Latino mortgages.

HOGAR's ties to Countrywide and the subprime mortgage industry were substantial. Bribery and self-dealing were rampant: Companies that donated $150,000 to then-Cong Baca got the right to have their own research fellow who would conduct fraudulent studies, which were cunningly used by industry lobbyists to pump fraudulent lending. Bribery and extortion in the form of $100,000 annual donations to then-Cong Baca, for which HOGAR provided phony news releases from then-Cong Baca's Hispanic Caucus promoting a lender's commercial products to the Latino market,

The most shocking example of bribery well-substantitated by Hogar's literature..... HOGAR announced it worked with Freddie Mac on a self-serving two-year examination of Latino homeownership in 63 congressional districts. The "study" found Hispanic ownership on the rise thanks to "new flexible mortgage loan products" that the industry was adopting at the urging of Cong Baca's collusive coterie.

HOGAR conned lenders into even more lenient down-payment and underwriting standards. As the subprime debacle unfolded, HOGAR declined repeated requests for comment despite the economic havoc their activities precipitated. The fraudulent mortgage schemes demonstrated the criminal activities of border violators with multiple identities---perhaps violent, terrorist-connected foreigners---colluding and conspiring to defraud private companies and public entities. And mortgage racketeering enterprises which employed sub rosa finance and business practices to carry out deceptions and frauds.

The alleged ring of swindlers---a Congresman, individuals with multiple identities, banks, insurance companies, mortgage brokers--might be charged with cheating the US govt, taxpayers and bank share holders out of hundreds of millions of dollars via an elaborate web of mortgage and bank frauds. The mortgage "Dreamers" used multiple phony identities, fraudulent Social Security numbers (purchased from identity forgers) in order to obtain govt-subsidized benefits. L/E will find that individuals with multiple identities obtained fraudulent mortgages then flipped the houses at ever-higher prices to family member who then absconded to foreign countries, sticking banks (and taxpayers) with hundreds of millions in fraudulent mortgages.

BACKGROUND A Wall Street Journal investigative report related that, according to the Federal Financial Institutions Examination Council examination of the borrowing spree, uncovered financial schemes by low-income housing groups, Hispanic lawmakers, a congressional Hispanic housing initiative, mortgage lenders and brokers, all colluding in fraduent schemes to increase homeownership among Latinos with forged documents which enabled massive fraud.

=================================================================================================

Baca and the separatist tax-funded "Hispanic Congressional Caucus" has been close-mouthed about its role in financing, and, earmarking the blood-thirsty America-hating La Raza. Race-pimping "La Raza" was given tax dollars...... and Congressional earmarks...... to finance its so-called "mortgage activities." La Raza's "strategic partnerships” with Wachovia and Bank of America forced the falsification of mortgage-applications. The dumbing down of mortgage requirements and documentation standards caused taxpayers to be socked w/ billions of dollars in bailouts...and decimated the US economy.

La Raza aided and abetted risky federal and private-home loans to latinos over the last decathanks to the lending industry’s version of “don’t ask, don’t tell.”

Plus----in addition to pocketing millions of federal tax dollars, La Raza also collected a $1 million Democratic earmark that funded “community-development” projects. Analysts report that much of it went to "mortgage counseling."

All of the official documents need to be scrutinized for fraud and falsification (a felony); as well, the Bank Secrecy Act needs to be mobilized to uncover the whereabouts of tax dollars and whether money laundering and tax-financed terrorism took place.

41 posted on 04/27/2014 3:56:01 AM PDT by Liz
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To: All
REFERENCE Cuomo's Social Engineering as HUD Chief Contributed to Subprime Crisis / originally published on Examiner.com ---SNIP---In 1993 President Bill Clinton appointed Andrew Cuomo (now NY 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 HUD 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.

Cuomo got lucky-- New York voters were distracted by his gubernatorial opponent's racist jokes; and failed to see the actual harm to the minority community directly caused by Cuomo's policies..

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."

NOT TO MENTION MASSIVE BAILOUTS W/ OUR TAX DOLLARS 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?

SOURCE http://voices.yahoo.com/cuomos-social-engineering-as-hud-chief-contributed-7077218.html

==============================================

INCONVENIENT FACTOID: Cuomo failed to pass his bar exam FIVE times; he's just another not-so-bright politician looking to shore up his lack of self-esteem on the backs of an electorate he despises.

42 posted on 04/27/2014 3:57:29 AM PDT by Liz
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To: neverdem

Whoa, who pulled them out of Sandy Bergers trousers?

Where is Sandy Berger?


43 posted on 04/27/2014 4:06:10 AM PDT by dforest
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To: neverdem

When Deval Patrick was in the Clinton Justice Dept he hammered banks with CRA


44 posted on 04/27/2014 4:11:59 AM PDT by Jimmy Valentine (DemocRATS - when they speak, they lie; when they are silent, they are stealing the American Dream)
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To: neverdem

Hardly breaking news...


45 posted on 04/27/2014 4:54:01 AM PDT by Eric in the Ozarks (Rip it out by the roots.)
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To: neverdem

Well well well! what a suprise! said it all along This was and still is a generated crisis to push us to a point NWO


46 posted on 04/27/2014 5:00:28 AM PDT by ronnie raygun
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To: BobL

They weren’t just told to make the bad loans. They were told they couldn’t make good loans if they didn’t make the bad loans, in an environment where the price of their collateral was going up faster than the rate of default. They also couldn’t buy sell, or merge with other companies.


47 posted on 04/27/2014 5:41:20 AM PDT by lepton ("It is useless to attempt to reason a man out of a thing he was never reasoned into"--Jonathan Swift)
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To: lepton

I’m sure you’re right...but even so, THEY KNEW the loans were crap and they saw them getting AAA Ratings and DID NOTHING.

Maybe I live by a different set of ethics?


48 posted on 04/27/2014 6:18:30 AM PDT by BobL
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To: neverdem; mickie; pax_et_bonum; seekthetruth; Maine Mariner; flaglady47
Probably the most disgusting displays of Bill O'Reilly's regular occasions of defending Obama was last week when he verbally crushed his regular contributor who had stated that the economic bubble-burst began when (simply put) lenders were forced by the government to issue mortgage loans to those who couldn't pay them back.

What the Bloviator did to her was without conscience, ignorant, nasty and arrogantly fascist.

He decried her absolutely correct analysis as FALSE, humiliated her, talked 100% over her protestations and rebuttals.....and then cut her off with that smug, patented know-it-all look of his.

By her facial expression she was plenty ticked off as the segment came to an abrupt, disgusting end.

I would have never come back on his show. However, this know-nothing jerk rules the roost at Fox and all who appear there want to stay in his good graces so they can remain on the Fox payroll.

Leni

49 posted on 04/27/2014 6:53:55 AM PDT by MinuteGal
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To: neverdem

I am a simple person who was raised rural & went to a one room schoolhouse.

I have worked in some level of bookkeeping/accounting since I was 17 years old. I am now 74.

I figured out when Jinnah Carter started the CRA that it would cause major problems.

Reagan made a big mistake when he didn’t kill that bill. I loved Reagan, but he made that mistake.

Under Clinton, CRA got put on steroids. Henry Cisneros couldn’t say enough about pushing CRA. I recall Janet Reno in a press conference telling the banks that she would use the strength & depth of the Federal government to put banks out of business if they DID NOT lend money on homes to everybody.

Hence, mortgages were given to people who didn’t qualify to buy a T-Shirt on payment plans.

Am illegal from Mexico who was a strawberry picker got a loan to buy a $650,000 house in Fresno, Calif. Who could possibly have been surprised when he defaulted??????

The banks then created ‘dirivatives’ to make money to offset the massive losses in the mortgages they were forced by the Feds to hand out. One real estate developer told me “If you could fog a mirror & sign an”X”, you could get a loan for ANY house.

Fannie Mae & Freddie Mac were created in the same time frame, to give the banks a place to dump their bad paper.

The origin of the CRA belongs directly at the feet of Jimmah Carter. Clinton, Reno & Cisneros just added fuel to the fire.

IMO, all 4 of them should be indicted for such actions, and thrown into prison for the next 90 years.


50 posted on 04/27/2014 7:44:48 AM PDT by ridesthemiles
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