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84% of subprime loans between 04 and 06 were offered by private lenders.

Discussion in 'Political Discussion' started by weswelker#83, Oct 11, 2008.

  1. weswelker#83

    weswelker#83 In the Starting Line-Up

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    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?
     
  2. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

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    The private lender were pressured by the government to make the loans under the CRA, clueless as usual.
     
  3. weswelker#83

    weswelker#83 In the Starting Line-Up

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    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 .;)
     
  4. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

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

    Patters Moderator Staff Member PatsFans.com Supporter

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    Data prove untrue charges that push for affordable housing caused crisis

    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.
     
  6. weswelker#83

    weswelker#83 In the Starting Line-Up

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    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 ?
     
  7. BelichickFan

    BelichickFan B.O. = Fugazi PatsFans.com Supporter

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    #24 Jersey

    Re: Data prove untrue charges that push for affordable housing caused crisis

    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
     
  8. PatsFanInVa

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  9. PatsFanInVa

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  10. Fogbuster

    Fogbuster Pro Bowl Player

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    Re: Data prove untrue charges that push for affordable housing caused crisis


    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.

    //
     
  11. DarrylS

    DarrylS PatsFans.com Supporter PatsFans.com Supporter

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    Re: Data prove untrue charges that push for affordable housing caused crisis

    You need to open your eyes and do some reading on this very complex issue.. this response is quite tiring.. one that has happened in the past week, in all newsources, is that much has been written as to how complex this really is.. there is comfort to find one source and stick to it, but in reality as much as many people have benefitted from the CRA loans.. the people on wall street benefitted exponentially better.. continually pointed out sources to help understand how complicated this whole thing is, but you have the answer..
     
  12. Patters

    Patters Moderator Staff Member PatsFans.com Supporter

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    Re: Data prove untrue charges that push for affordable housing caused crisis

    Do you not understand the problems with your argument?

    This article say that "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." You did not respond to that important point.

    In other threads it was documented that 80% of mortgages had nothing to do with the CRA. You did not respond to that.

    In other threads it was pointed out that the CRA regulated banks that tended to have stricter lending policies than mortgage companies. You did not respond to that.

    In other threads it was pointed out that the CRA did not in any way force anyone to make bad loans. You have cited no specific evidence that CRA forced banks to make bad loans.

    You watched some silly video that did not provide proper links and sources and bought into it because it found a way to blame Carter and Clinton while bypassing the Republicans.

    Again, Fog, the CRA only affected banks and S&Ls. Most of the bad mortgages were given out by other lenders. They made high risk loans because given the rapidly increasing home values, they felt it was worth the risk. There were no regulations to stop them from making these loans. The Republicans are the ones who led the drive to deregulate.

    Rather than regurgitating your Republican talking points, perhaps you should try to engage in proper discussion by countering some of the points that I and others have made? I think the reason you don't do that is that you have no response, but instead of simply being quiet, you seem to think that if you repeat your debunked claims enough times someone is going to listen.
     

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