weswelker#83

Federal Reserve Board data show that:

_ More than 84 percent of the subprime mortgages in 2006 were issued by private lending institutions.

_ Private firms made nearly 83 percent of the subprime loans to low- and moderate-income borrowers that year.

_ Only one of the top 25 subprime lenders in 2006 was directly subject to the housing law that's being lambasted by conservative critics.

The "turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007," the President's Working Group on Financial Markets reported Friday.

McClatchy Washington Bureau | 10/11/2008 | Private sector loans, not Fannie or Freddie, triggered crisis


Why does the Private sector hates America?

patsfan13

The private lender were pressured by the government to make the loans under the CRA, clueless as usual.

__________________
"Some guys play in all-star games, some guys don't. I don't know who picks all those all-star teams. In all honesty, I don't know who picks the combine, for that matter," Belichick said. "How does (Miami-Ohio offensive lineman Brandon) Brooks not get invited to the combine? How did Vollmer not get invited to the combine? I don't know. We can't really worry about that. We just have to try to evaluate them the best we can."

weswelker#83

Though fannie and freddie played a role (a small one) in all of this, it was that lack of regulation that really is to blame. Rude as usual.


What president was in charge between 2004 and 2006 ?
Remember 84% of subprime loans between 04 and 06 were offered by private lenders.

EPIC FAIL .

patsfan13

Fine who tried to reform and who blocked reform efforts (Hint it was B Frank's and Chris Dodd's party).

__________________
"Some guys play in all-star games, some guys don't. I don't know who picks all those all-star teams. In all honesty, I don't know who picks the combine, for that matter," Belichick said. "How does (Miami-Ohio offensive lineman Brandon) Brooks not get invited to the combine? How did Vollmer not get invited to the combine? I don't know. We can't really worry about that. We just have to try to evaluate them the best we can."

Patters

Oh well, back to the drawing board for righties. It's getting harder to blame Carter and the Democrats for this one.

Data prove untrue charges that push for affordable housing caused crisis | MiamiHerald.com

Commentators say that's what triggered the stock market meltdown and the freeze on credit. They've specifically targeted the mortgage finance giants Fannie Mae and Freddie Mac, which the federal government seized on Sept. 6, contending that lending to poor and minority Americans caused Fannie's and Freddie's financial problems.

Federal housing data reveal that the charges aren't true, and that the private sector, not the government or government-backed companies, was behind the soaring subprime lending at the core of the crisis.

weswelker#83

The brokers all knew these people couldn't make their payments, but they did not care. There was a "secret" called the 7:3 ratio. If 7 out of 10 loans were good, the bundle was purchased by a bank almost without question. If there were more bad loans in there, the banks may reject the package.
Are these brokers at fault? You bet. Are the banks at fault for being complicit? You bet



What president was in charge between 2004 and 2006 ?

BelichickFan

The problem STARTED due to the CRA and FM/FM. Sure, the private sector got greedy/made mistakes by taking on the risky bundles of mortgages; but those bundles would never have existed if not for the CRA that started under Carter. And it was McCAIN who tried to look into/regulate FM/FM more - and no Democrats supported him, including Mr. Smiley.

McCain Letter Demanded 2006 Action on Fannie and Freddie - HUMAN EVENTS

PatsFanInVa

Good lord, how often do I have to do this...

Post 14, guys.

NOBAMA comitted TREASON!

PatsFanInVa

Post #14 dudes.

NOBAMA comitted TREASON!

Fogbuster

No, it's not. Nobody wants to go the root of the problem out of fear of being labeled a "racist". Be honest. Patters and others have specifically used the race card ("poor people" card) to scare off people on this subject.

There is zero doubt that the CRA, started under Carter then hugely expanded under Clinton, is the driving engine behind the explosion of bad mortgages given to people who could not afford to pay them. It would not matter if 100% of the mortgage loans were given by private banks, those banks were PRESSURED and FORCED to give out bad mortgages by the CRA's final language, as forced through Congress by Clinton and the Democrat majority.

This is the truth. No amount of lying or prevaricating on this issue is going to change it.

The only question remains is whether the MSM will continue to spike this story, or not. Everybody knows the Democrats want this to disappear until at least after the elections are over, and maybe forever because it will mean indictments; it will mean people removed from Congress; it will produce a national fallout that will make every other scandal in America's history pale by comparison.

Lies are NOT going to work. Not any more.

//

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"All that is required for evil to triumph is for good to do nothing."