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Zero-down mortgage initiative by Bush is hit
Boston Globe ^ | October 5, 2004 | Chris Reidy

Posted on 06/10/2012 8:10:22 AM PDT by WilliamIII

President Bush's weekend campaign promise that he will push legislation allowing for no money down on some federally insured mortgages could cost taxpayers as much as $500 million over four years because of a higher rate of defaults, according to the Congressional Budget Office.

The election-year idea may appeal to those who can't save as fast as home prices are rising. But some financial planners warn that increasingly common no- and low-down-payment programs can be ruinous for some consumers -- especially if home values decline.

If housing prices fall, consumers with little or no money of their own invested in the home are more vulnerable to ending up with mortgages larger than the value of the house.

(Excerpt) Read more at boston.com ...


TOPICS: Business/Economy; Extended News; Government
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To: donna

Yep — George “Compassionate” Bush was in many ways a big government disaster. I don’t know why pointing that out makes one a troll.


101 posted on 06/10/2012 12:33:29 PM PDT by heye2monn
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To: dragnet2; DManA
Of course it's ludicrous. That's why no one claims that.

Just the Obama campaign.

102 posted on 06/10/2012 12:35:58 PM PDT by RckyRaCoCo (I prefer liberty with danger to peace with slavery, IXNAY THE TSA!)
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To: DManA

“I’d say it was their lack of faith in free markets.”

The financial markets were far less regulated during the bubble than they had been for many decades.

The Commodities Futures Modernization Act of 2000 had been lobbied hard by investment firms that wanted the derivatives market to be unregulated. This prevented the oversight and transparency that Brooksley Born had warned was badly needed.

‘Graham-Leach-Bliley’, the Financial Services Modernization Act of 1999, undid most of what remained of the Glass Steagall Act. Glass Steagall had walled investment banking off from the “real economy”. After a 65 year hiatus the short term speculative focus of investment banking was reentering the “real economy”.

And added to that, the nature of investment banking had radically changed. Investment banks used to be partnerships, and they were careful because they were investing their own money. But now they were public companies and they were investing Other People’s Money, leading to a casino atmosphere among traders.


103 posted on 06/10/2012 12:49:24 PM PDT by Pelham (Marco Rubio, la Raza's trojan horse.)
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To: donna

“What about the home equity line of credit? In the 1980’s banks offered this new revolving line of credit . . . and everyone wasted their equity - the biggest savings in their lives blown away.”

There’s an economist in SoCal, Chris Thornburg, who I once heard say that the boom in California after 2001 was equal to the amount of home equity withdrawal. And that when it stopped the economy would, too. He was one of the lonely voices warning of the real estate bubble and how it was going to end badly.


104 posted on 06/10/2012 12:58:56 PM PDT by Pelham (Marco Rubio, la Raza's trojan horse.)
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To: Pelham

Can’t trust markets to house people. Must use the power of Government to HELP the people. Markets enrich the rich, government HELPS people.

That is the core belief of all statists.


105 posted on 06/10/2012 1:03:27 PM PDT by DManA
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To: heye2monn

There is an us verses them dynamic going on. GWB is one of “US” and if you have anything bad to say about him that makes you one of “THEM”.

Poor substitute for thinking IMO.


106 posted on 06/10/2012 1:08:47 PM PDT by DManA
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To: RckyRaCoCo
History will judge Bush on 911, the Iraq war, and how he dealt with the unprecedented natural disasters that occurred under his presidency.

BS, the real history is he spent like a drunken lotto winner, while tens of millions entered the country illegally, to the point where he nearly single handily made American citizenship all but pointless, all this during so-call war time, the housing collapse, and allowing in more Muslims, after 911 than the previous two decades.

BTW, in my opinion, the Iraq war was a disaster, costing tax payers trillions, leaving thousands of Americans dead or wounded...And we stayed for years, way too long, to the point where most Americans were disgusted and even the Iraqis wanted us to get the hell out.

Bush's words, not mine:

Bush: By the end of this decade we will increase home ownership by at least 5.5 million minorities...dismantle barriers for home ownership

Bush: You don't have to have a lousy home for first time home buyers, you can have as nice of home as anyone else!

107 posted on 06/10/2012 1:10:12 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: dragnet2

Saying one is for home ownership is about like saying your’e for mom and apple pie
if this is the damaging goods on your arch enemy Bush he emerged unscathed


108 posted on 06/10/2012 1:11:41 PM PDT by woofie (It takes three villages and a forest of woodland creatures to raise a child in Obamaville)
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To: dragnet2; DManA

http://www.youtube.com/watch_popup?v=cMnSp4qEXNM&NR=1


109 posted on 06/10/2012 1:16:05 PM PDT by woofie (It takes three villages and a forest of woodland creatures to raise a child in Obamaville)
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To: woofie

Bush: By the end of this decade we will increase home ownership by at least 5.5 million minorities...dismantle barriers for home ownership

Bush: You don’t have to have a lousy home for first time home buyers, you can have as nice of home as anyone else!

____________________________________________________

No matter how hard ya try, ya can’t put the bullet back in the gun woofie!


110 posted on 06/10/2012 1:19:44 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: woofie

He saw the problem and failed to fix it. But we still love ya man.


111 posted on 06/10/2012 1:21:49 PM PDT by DManA
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To: woofie

Saying you will use the power of the Federal government to accomplish this is NOT synonymous mom and apple pie. It is an alien ideology.


112 posted on 06/10/2012 1:25:01 PM PDT by DManA
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To: dragnet2

I dont really expect you to read this as you seem a bit stuck where you are at ....but on the off chance someone cares about the real record of BIG SPENDER GW BUSH maybe they will read it ....

http://keithhennessey.com/2010/11/18/president-george-w-bushs-spending-record/
>>>>>>>>>>>>>>>
Does it bother you at all that as a Bush hater means you have bought all the arguments of the left?


113 posted on 06/10/2012 1:28:00 PM PDT by woofie (It takes three villages and a forest of woodland creatures to raise a child in Obamaville)
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To: heye2monn

Blaming BUSH, without looking at everything that happened is not only disingenuous, it’s over and over again, by the DailyKos/MSNBC/MediaMatters crowd.

Take a look at the Youtube Vid I posted earlier of Democrats claiming it was RACIST to think anything was wrong at Fannie or Freddie, back in 2004.


114 posted on 06/10/2012 1:30:25 PM PDT by tcrlaf (Election 2012: THE RAPTURE OF THE DEMOCRATS)
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To: RWGinger
Administration mortgage program to zero down would help 150,000 first-time buyers in the first year, 150,000. wow if they all default that will be disasterous

Wow! So, now it's okay for taxpayers to subsidize mortgages as long as it's an R. It goes even further under Bush, though. Let's see if you are willing to suspend your beliefs for this truth:



In Bush's June 17, 2002 speech, he also called for the creation of the American Dream Down Payment Fund.

"And so here are some of the ways to address the issue. First, the single greatest barrier to first time homeownership is a high downpayment. It is really hard for many, many, low income families to make the high downpayment. And so that's why I propose and urge Congress to fully fund the American Dream Downpayment Fund. This will use money, taxpayers' money to help a qualified, low income buyer make a downpayment. And that's important."

And, the 108th Congress (2003-2005) responded with the American Dream Downpayment Act:

"Amends the Cranston-Gonzalez National Affordable Housing Act to: (1) authorize the Secretary of Housing and Urban Development to make grants to State and local participating jurisdictions for downpayment assistance and related home repair to low-income, first-time home buyers; and (2) limit family assistance to the greater of six percent of the purchase price or $10,000. Requires a participating jurisdiction to include intended grant uses in its fiscal year comprehensive housing affordability strategy under such Act."

"Sets forth State and local jurisdiction allocation formulas. Permits fund reallocation."

"Requires the Comptroller General to report respecting the impact of such grants on a State-by-State basis."

"Terminates grant authority after December 31, 2007. Authorizes specified FY 2004 through 2007 appropriations."

"Makes the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 inapplicable to such assistance."

The act was authorized to appropriate up to $200 million per year of US taxpayer funds between FY2004 through FY2007 to go to Bush's 'minorities'.

The sponsor and co-sponsors of this $800 million giveaway:

Sponsor: Sen. Wayne Allard [R-CO]

Co-sponsors:
Sen. Samuel Brownback [R-KS]
Sen. Conrad Burns [R-MT]
Sen. Ben Campbell [R-CO]
Sen. Michael Crapo [R-ID]
Sen. Michael Enzi [R-WY]
Sen. Charles Hagel [R-NE]
Sen. Lisa Murkowski [R-AK]
Sen. Richard Santorum [R-PA]
Sen. Jefferson Sessions [R-AL]

115 posted on 06/10/2012 1:30:35 PM PDT by raybbr (People who still support Obama are either a Marxist or a moron.)
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To: DManA

When has a President been able to “fix” anything when the Congress didnt act?

Maybe in your utopian dreams a President can be a dictator but the framers of the constitution didnt like that idea


116 posted on 06/10/2012 1:31:19 PM PDT by woofie (It takes three villages and a forest of woodland creatures to raise a child in Obamaville)
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To: woofie
I dont really expect you to read this as you seem a bit stuck where you are at

Ya see woofie it's not where, "I'm at"....Ya keep trying to make this about me woofie....lol

These are Bush's words, not mine.

Bush: By the end of this decade we will increase home ownership by at least 5.5 million minorities...dismantle barriers for home ownership

Bush: You don’t have to have a lousy home for first time home buyers, you can have as nice of home as anyone else!

117 posted on 06/10/2012 1:33:22 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: dragnet2

Sorry, but repeating it over and over reminds me of the Rumsfield quote “Stuck on Stupid”


118 posted on 06/10/2012 1:35:58 PM PDT by woofie (It takes three villages and a forest of woodland creatures to raise a child in Obamaville)
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To: woofie

I understand all the excuses. The fact remains he failed. I don’t hate him for that. But neither do I love him for having tried.


119 posted on 06/10/2012 1:36:47 PM PDT by DManA
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To: woofie

You hero never called people names when he was in a tight spot.


120 posted on 06/10/2012 1:37:45 PM PDT by DManA
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To: woofie
Sorry, but repeating it over and over reminds me of the

The truth?

121 posted on 06/10/2012 1:39:00 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: raybbr

Wow Its nice when the whole crowd gets together

122 posted on 06/10/2012 1:44:09 PM PDT by woofie (It takes three villages and a forest of woodland creatures to raise a child in Obamaville)
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To: woofie

Ok, I’ll leave you alone. You are too emotional about this to discuss it without tossing insults.


123 posted on 06/10/2012 1:52:14 PM PDT by DManA
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To: woofie; DManA
When has a President been able to “fix” anything when the Congress didnt act? Maybe in your utopian dreams a President can be a dictator but the framers of the constitution didnt like that idea.

When did a president never veto a spending bill that put America into trillions of dollars of debt? Why, GW, of course. Not once in the first six years of his presidency did he veto a bill that spent too much money.

He didn't have to be a dictator - just be responsible and be honest.

124 posted on 06/10/2012 1:56:23 PM PDT by raybbr (People who still support Obama are either a Marxist or a moron.)
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To: DManA

“Can’t trust markets to house people. Must use the power of Government to HELP the people. Markets enrich the rich, government HELPS people.

That is the core belief of all statists.”

I don’t know who is crazier, those who worship the market or those who worship the government.


125 posted on 06/10/2012 2:06:33 PM PDT by Pelham (Marco Rubio, la Raza's trojan horse.)
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To: tcrlaf

The problem was indeed ‘helping people get homes’. Bush doesn’t get all the blame, but he contributed to it and it hit the critical point on his watch.

He occasionally made some noise about the Democrat-run Fannie and Freddie needing ‘reform’, but he didn’t deal with the larger issue and he helped to make it worse.


126 posted on 06/10/2012 2:19:48 PM PDT by 9YearLurker
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To: smoothsailing

Hey! Is that benburch?


127 posted on 06/10/2012 2:35:26 PM PDT by COBOL2Java (FUMR)
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To: smoothsailing; tcrlaf
Excellent work, (banning the thread poster) y'all!!! :o)

Great job!

Bush: By the end of this decade we will increase home ownership by at least 5.5 million minorities...dismantle barriers for home ownership

Bush: You don’t have to have a lousy home for first time home buyers, you can have as nice of home as anyone else!

Bush's speech pushing home ownership for millions of unqualified minorities..

Bush: Dismantle barriers for home ownership http://www.youtube.com/watch?v=MqR15H0gNBU

128 posted on 06/10/2012 2:58:06 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: WilliamIII

What’s the bills number?


129 posted on 06/10/2012 3:21:15 PM PDT by NoLibZone (I trust Sarah Palin, Dick Cheney, Cain, Perry, Bachman : I trust their judgment on their 2012 pick.)
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To: COBOL2Java

LOL!!!


130 posted on 06/10/2012 3:24:49 PM PDT by smoothsailing
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To: woofie
You guys who want to blame Bush are just sad delusional sick people . . . .

The sad part is, if you look at the actual timeline (instead of posting BS from YouTube), Bush 43 tried to warn us about Fannie and Freddie. So did Greenspan. Heck, so did McCain (imagine that!).

No one wanted to listen. Now, folks simply want to score political points. To prove how "conservative" they are. LOL

131 posted on 06/10/2012 4:03:49 PM PDT by 1rudeboy
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To: Toddsterpatriot; Mase; expat_panama

Check out the hand-wringing on this thread.


132 posted on 06/10/2012 4:10:45 PM PDT by 1rudeboy
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To: woofie

That quote was from LtG Russel Honore.


133 posted on 06/10/2012 4:19:41 PM PDT by VMI70
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To: DManA

Im sorry if I hurt your feelings by saying you sound like a victim of BDS


134 posted on 06/10/2012 4:26:17 PM PDT by woofie (It takes three villages and a forest of woodland creatures to raise a child in Obamaville)
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To: donna; dragnet2; Jeff Chandler; WilliamIII

Welcome back, WmIII! Some of us missed you.


135 posted on 06/10/2012 4:55:35 PM PDT by VMI70
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To: donna

What about it? Home values dropping and equity lost is collateral damage, along with cookie cutter homes made of low standard materials (thanks to the 1994 NHS) instantly losing value that those homes will never see again.

It’s supply and demand; false demand created by gov’t policy which finally caves leaves over supply.


136 posted on 06/10/2012 4:58:38 PM PDT by CommieCutter
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To: VMI70

He is after all the BDS KING


137 posted on 06/10/2012 4:59:07 PM PDT by woofie (It takes three villages and a forest of woodland creatures to raise a child in Obamaville)
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To: DManA

So? I understand that.

The point of my post is I continue to see an evolving theme that Bush is almost exclusively guilty in the housing collapse. This is not the case. I have no qualms with addressing Bush’s “compassionate conservative” role whatsoever— or even lay a small share of the blame to the GOP for becoming the “me-too” party since the New Deal.


138 posted on 06/10/2012 5:07:37 PM PDT by CommieCutter
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To: CommieCutter
What do you mean what about it?

It's all government interference and unintended consequences. Those second mortgages were sold as tax deductible.

139 posted on 06/10/2012 6:14:19 PM PDT by donna (Mitt quote: ...gay couples raising kids. That's the American way...)
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To: Pelham
There’s an economist in SoCal, Chris Thornburg, who I once heard say that the boom in California after 2001 was equal to the amount of home equity withdrawal. And that when it stopped the economy would, too.

I think he was right.

And it was also like an anti-education campaign to the public. Thereafter, people somehow believed it was foolish to NOT spend their equity!

140 posted on 06/10/2012 6:18:23 PM PDT by donna (Mitt quote: ...gay couples raising kids. That's the American way...)
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To: donna
It's all government interference and unintended consequences.

Yes I understand that but your original point--posted to me-- is like a discussion about a person who pushed someone off a cliff and someone saying, "..but what about the gravity that was involved."

Everyone understands people lost their rears as the end result of this, so I'm not sure why you decided to counter with that. My point was about the policy that led to this, not about the obvious damage. That's why I said, "So what?"

141 posted on 06/10/2012 6:55:34 PM PDT by CommieCutter
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To: donna
In the 1980’s banks offered this new revolving line of credit . . . and everyone wasted their equity - the biggest savings in their lives blown away.

Yeah...and they would have never lost it like that had in not been for the changes that took place in the 1990's.

Even the NY Times called it in 1999: "In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's."

142 posted on 06/10/2012 7:16:23 PM PDT by CommieCutter
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To: CommieCutter

Your link was about the 1990’s. I was just indicating that big government has been messing with mortgage money always. It doesn’t clear President Bush for his part.


143 posted on 06/10/2012 7:27:28 PM PDT by donna (Mitt quote: ...gay couples raising kids. That's the American way...)
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To: WilliamIII

100% true, that was a disaster


144 posted on 06/10/2012 9:39:03 PM PDT by sickoflibs (Romney is a liberal. Just watch him closely try to screw us.)
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To: donna

I never did clear president Bush for his part.

Governments have been messing with money for thousands of years.

1980’s Home equity tax deductions were not part of the cause of this recent housing collapse. That’s like saying child tax credits will result in an overpopulated baby boom.

My link is about the 1990’s because that’s where the lending requirements went to hades. Pointing out loans from the 1980’s when the lending requirements were sound makes no sense to me.


145 posted on 06/11/2012 3:57:16 AM PDT by CommieCutter
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To: donna; CommieCutter; dragnet2; Jeff Chandler; WilliamIII; ding_dong_daddy_from_dumas; ...
RE :”I was just indicating that big government has been messing with mortgage money always. It doesn’t clear President Bush for his part.

Understatement.
Back in 2003 and 2004 pushing home loans to minorities with bad credit was sold BY REPUBLICANS as a brilliant political 'Rove' type move to get a few of their votes for 2004, all lost by 2008 when those houses were foreclosed on. then the same Republicans denied they (GWB) were ever for it, by then it's was all a Dem plot which apparently worked well for them.

Bush home Ownership links:

Bush pushes minority homeownership (FR post | June 15, 2002 | By KATHY A. GAMBRELL)

Bush seeks to increase minority homeownership (FR post USA Today ^ | 1-20-04 | Thomas Fogarty )

President Bush Mortgage Speech 2002(Helping those w bad credit buy houses)

Speaker Hastert Touts Law Closing the Homeownership Gap for Minorities (FR Post Wednesday, October 01, 2003 )

Fact Sheet: Expanding Homeownership Opportunities for All Americans (December 16, 2003 American Dream Downpayment Act of 2003)

Compassionate conservative was proved to be a huge failure under Bush as all those minorities voted Democrat by 2008 after they lost all those homes promoted above.

146 posted on 06/11/2012 5:51:18 AM PDT by sickoflibs (Romney is a liberal. Just watch him closely try to screw us.)
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To: sickoflibs; donna; CommieCutter; dragnet2; Jeff Chandler; WilliamIII; stephenjohnbanker; ...
Back in 2003 and 2004 pushing home loans to minorities with bad credit was sold BY REPUBLICANS as a brilliant political 'Rove' type move to get a few of their votes for 2004, all lost by 2008 when those houses were foreclosed on. then the same Republicans denied they (GWB) were ever for it, by then it's was all a Dem plot which apparently worked well for them.

GWB talked out of both sides of his mouth wrt home ownersahip, and the GWB fanatics repeat only what came from one side. Just because I hate Barney Frank, Ted Kennedy and company does not mean I must excuse Bush.

147 posted on 06/11/2012 7:33:37 AM PDT by ding_dong_daddy_from_dumas (Fool me once, shame on you -- twice, shame on me -- 100 times, it's U. S. immigration policy.)
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To: sickoflibs; dragnet2; ding_dong_daddy_from_dumas

Back around the summer of 2006, I tried to warn as many FReepers as I could that California and Nevada prices were insane, and that there would be a bloodbath. I was flamed like no tomorrow : )


148 posted on 06/11/2012 8:30:03 AM PDT by stephenjohnbanker (God, family, country, mom, apple pie, the girl next door and a Ford F250 to pull my boat.)
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To: CommieCutter
You just don't see patterns.

These are the methods socialists use to increase the size and our dependence on big government. They desensitize us as the decades pass until you don't even see the manipulation any more.

149 posted on 06/11/2012 2:42:33 PM PDT by donna (Mitt quote: ...gay couples raising kids. That's the American way...)
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To: sickoflibs
In the 1980’s before things got even crazier, loan originators used to photo copy the driver licenses of the borrowers. Then they would pass around the copies to get opinions of last names to see if they could be listed as minority lending because of red-line pressure from big government.
150 posted on 06/11/2012 2:49:30 PM PDT by donna (Mitt quote: ...gay couples raising kids. That's the American way...)
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