[brytlea]

You know, I rarely see anyone talking (so far) about the fact that Congress pressured banks to make home loans to people who should have never had home loans. I have also wondered if another piece of the puzzle was the fact that they could make the loan and then move it on to Fannie Mae etc? That way, they didn’t CARE if it had a chance in hades of being paid back.
susie

[HighlyOpinionated]

You know, I rarely see anyone talking (so far) about the fact that Congress pressured banks to make home loans to people who should have never had home loans. I have also wondered if another piece of the puzzle was the fact that they could make the loan and then move it on to Fannie Mae etc? That way, they didn’t CARE if it had a chance in hades of being paid back. susie

BINGO, hand that woman a kewpie doll!

Congress is guilty as sin for this. John McCain tried to put restraints back on Mortgages and Fannie and Freddie in 2005 and Congress refused to listen to him.

I think the Real Estate Companies and the original banks that gave the loans should have some kind of punishment placed upon them, too.

[skeeter]

I have also wondered if another piece of the puzzle was the fact that they could make the loan and then move it on to Fannie Mae etc?

This is the intended purpose of FNMA, FHLMC, etc. to provide "liquidity" to the mortgage market & enable primary lenders to move liabilities off their books & make more loans. Of course these lenders will then be less inclined to screen borrowers, ESPECIALLY when the government further mandates they make risky loans in the interest of "making homes affordable to the less fortunate".

They've got to put the "free" back in free market.

[ovrtaxt]

What was the law, the Community Reinvestment Act or something? Boortz had a column yesterday on it.

[grey_whiskers]

The problem for the Dems is, the *required* reforms will put a huge dent in their Danegeld to the inner city minority populations, including funding for, ahem, "community organizers" aka ACORN vote-fraud schemes.

If Dems are limited to one vote per living, valid, registered voter, their national power base will implode within microseconds.

And then (if we had any balls) we would send most of them to Leavenworth.

[MarkL]

You know, I rarely see anyone talking (so far) about the fact that Congress pressured banks to make home loans to people who should have never had home loans. I have also wondered if another piece of the puzzle was the fact that they could make the loan and then move it on to Fannie Mae etc? That way, they didn’t CARE if it had a chance in hades of being paid back.

susie

I've seen that discussed A LOT right here, ever since the bill was passed. Of course you never see it in the MSM, or CSPAN. Pelosi claims that Congress had nothing to do with this. It's just the republican's fault.

Only the government could come up with a business model to loan money to people who can't pay it off, and expect it to survive, financially. Of course, this is the same government that can't run their own restaurant for 100 people (the senate). They've had to get emergency "loans" to cover expenses over and over again! And this is the same government that's going to save the financial markets, and provide out health care.

"Dear Lord, please save me from these people who want to help me!"

Mark