Federal Housing Enterprises Regulatory Reform Act of 1992

This is a link to the Reform act (S.2733) that forced banks to write bad loans according to quotas from the Congress, which led us to the housing collapse of 2008.

This was a rather frustrating document to find. That's why I publish it here, this is the full and complete bill that passed the Senate after passing the House in 1992 under Bill Clinton and a Democrat Congress. Coincidentally it also led to the federal funding of ACORN.

In part: SEC. 906. SENSE OF THE SENATE.

(a) FINDINGS- The Congress finds that--

(1) the two housing Government-sponsored enterprises, the Federal National Mortgage Association (hereafter in this section referred to as `Fannie Mae') and the Federal Home Loan Mortgage Corporation (hereafter in this section referred to as `Freddie Mac') have issued or guaranteed nearly $900,000,000,000 of securities which are currently outstanding;

(2) Fannie Mae and Freddie Mac are privately owned, profitmaking enterprises whose securities are viewed by investors as having an implicit Federal guarantee;

(3) investor perception of a Federal guarantee, as the savings and loan crisis demonstrates, removes market discipline, reduces incentives to maintain strong capital positions, and distorts financial decisions;

(4) the outstanding obligations of Fannie Mae and Freddie Mac exceed those in the entire savings and loan industry;

(5) the existing regulatory structure and oversight of the Fannie Mae and Freddie Mac has been inadequate;

(6) history has shown that a regulator charged with protecting taxpayer dollars must be independent of other policymaking entities;

(7) this Act takes concrete steps to establish safety and soundness regulation of Fannie Mae and Freddie Mac;

(8) this Act creates an independent regulatory office, the Office of Federal Housing Enterprise Oversight, in the Department of Housing and Urban Development; and

(9) the independence of the Office cannot be compromised without impairing the ability of the regulator to ensure that the Fannie Mae and Freddie Mac are adequately capitalized and operating safely.

(b) SENSE OF THE SENATE- It is the sense of the Senate that any final Government-sponsored enterprise legislation should make it clear that the independence of the regulator overseeing the safety and soundness of Fannie Mae and Freddie Mac should not be compromised.

I am posting this mostly for the link, its a HUGE bill.

http://en.wikipedia.org/wiki/Community_Reinvestment_Act

Wikipedia doesn’t name a bill, but calls it as a regulatory change.

I’ll try some more search variations.

There were all kinds of changes it looks like.

Not to mention the Gramm-Leach-Bliley Act the Democrats blame REQUIRED BANKS to PASS a CRA INSPECTION in order to benefit from the “deregulation” benefits of the GLB-Act.
That means groups like ACORN could cause a bank to get sued if they didn’t approve of their lending practices. Remember, Obama sued Citibank, right? I believe it was because of their lack of passing a CRA inspection (someone correct me if I’m wrong).

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