QUOTE: "Long-term pressure from Frank and his colleagues to expand home ownership connects government housing policies to both the Housing Bubble and the poor quality of the mortgages on which it is based"
http://www.forbes.com/2009/02/13/housing-bubble-subprime-opinions-contributors_0216_peter_wallison_edward_pinto.html
Did the real estate collapse trigger insurance and banks to fail, and then further snowball into high unemployment?
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Yes sir Frank and Dodd almost single handedly created the housing melt down by their inept legislative push for Fannie and Freddy to underwrite bad loans. They didn’t care as they got kick backs and sweet deals in doing so, and that is a fact
Yes sir Frank and Dodd almost single handedly created the housing melt down by their inept legislative push for Fannie and Freddy to underwrite bad loans. They didn’t care as they got kick backs and sweet deals in doing so, and that is a fact
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May God Bless you and keep us all safe from the progressive axis of evil,0bama,Pelosi&Reid
Yes it did!!! It was much like the failed 0bama stimulus!!!
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If it did it was a very small part of it – about 2%.
The housing act DIDN’T GIVE PEOPLE SUBPRIME LOANS, which were the real problem, and they defaulted at a lower rent than the general public.
The sub-prime market was created by the banks themselves, and AGAINST the recommendations of the Govt.
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-This is a somewhat reasonable sounding lie you guys will be trying to sell till the end of time though.
whatever that guy said
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It’s not about who created the bubble, it’s about when the bubble was popped.
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Y*E*S
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Frank and his cohorts had significant influence on Freddie and Fannie and were the main contributors to the housing bubble that burst.
I am sure the housing collapse had negative influences on the insurance and banking fiascoes but there were other factors.
All of these contributed to the higher unemployment.
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So many people are misinformed about what really happened. Subprime loans added to the bubble to be sure. But so did all those flipping shows. So did a lot of things. What really started the collapse was the government’s desire to get the FHA back to being the leading lender. A lot of those subprime loans didn’t start collapsing until the government raised the interest rates, upped the minimum on credit cards and changed the bankruptcy laws, all within a couple of months. The FHA went from a 5% market share to a 65% market share virtually over night. Before the government changes, the foreclosures on the subprime loans were higher than the general population, but that was expected. That’s why their rates were higher. After the changes, they went up 1000%.
To answer the question, yes Frank and Pelosi were idiots. 25% or more of the population has no business owning their own home. They don’t have the responsibility, or the desire, or both.
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http://archives.clintonpresidentialcenter.org/?u=102397-vp-announces-record-homeownership-level.htm
http://www.nytimes.com/1999/09/30/business/fannie-mae-eases-credit-to-aid-mortgage-lending.html
http://www.presidency.ucsb.edu/ws/index.php?pid=51448
Subprime Mortgage began in 1994
October 23, 1997
(From the Clinton Archives)
In 1994, President Clinton, along with the National Partners in Homeownership, set a goal for the nation to achieve an all-time high homeownership rate by the year 2000. Today — a full three years early — the Census Bureau reported that in the third quarter of 1997 the homeownership rate climbed to its highest level ever. Here are some of the results from the Census report, as well as other housing-sector statistics:
–In 1995, at the request of President Clinton, the Administration convened the National Partners in Homeownership to carry out a National Homeownership Strategy
– The Clinton Administration has cut FHA home mortgage insurance premiums four times
–In 1999, under pressure from the Clinton administration, Fannie Mae, the nation’s largest home mortgage underwriter, relaxed credit requirements on the loans it would purchase from other banks and lenders, hoping that easing these restrictions would result in increased loan availability for minority and low-income buyers.
Putting pressure on the GSE’s (Government Sponsored Enterprise) Fannie Mae and Freddie Mac, the Clinton administration looked to increase their sub-prime portfolios, including the Department of Housing and Urban Development expressing its interest in the GSE’s maintaining a 50% portion of their portfolios in loans to low and moderate-income borrowers.[9]
Fannie Mae Eases Credit To Aid Mortgage Lending
WASHINGTON, Sept. 29, 1999 — In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
The action, which will begin as a pilot program involving 24 banks in 15 markets — including the New York metropolitan region — will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans.
***** Fannie Mae officials say they hope to make it a nationwide program by next spring. ***
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@ Future:
the Clinton administration looked to increase their sub-prime portfolios, including the Department of Housing and Urban Development expressing its interest in the GSE’s maintaining a 50% portion of their portfolios in loans to low and moderate-income borrowers.[9]
Dude.. Why would banks WANT to lend to people who couldn’t pay !!! You’re clueless about what Lending is.
In their haste to ensure that everyone could own a home whether they could afford it or not, Clinton signed the Gramm/Leach/Bliley act that took away financial rules allowing investment in sub prime mortgages. The government created the situation, banks became greedy wanting their piece of the action, behemoth companies were deemed too big to fail and while those who gained hefty profit and bonuses on the sale of sub prime mortgages disappeared, the rest of us were left ot pick up the tab. Democrats caused the problem that Obama is currently blaming on Bush. Home ownership is right for those who qualify to own a home and Obama’s assertion that people who live in assisted housing that they don’t own and therefore have no vested in is just another poor excuse for telling people that it’s okay to scream discrimination when they don’t get what they want because they can’t afford it. I grew up in public housing and my parents always respected our home and took care of it because it reflected on their character and community spirit. They scrimped and saved and we did without and eventually they managed to save up the deposit for a modest home. People who demand it, can’t afford it but want us to pay for it are being reinforced by the Obama administration, who believes that entitlement trumps affordability and ability to pay.
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