I thought I'd made myself clear. Bush did this for his true constituents, the Wall Street bankers. It was they who wanted to tap into this market segment.
How big?
The most significant recent waves of immigrants to this country, according to the 2000 Census, are from Latin American countries. This group's purchasing power is expected to almost double from $491 billion in 2000 to $926 billion by 2007.1 The international remittance market, particularly in Latin America and the Caribbean, also is expected to grow considerably. Billions of dollars are flowing from the United States to Mexico and other countries, and a significant share of these transactions is taking place outside the formal banking system. (See: Linking International Remittance Flows to Financial Services: Tapping the Latino Immigrant Market)
I’m glad you have always had every dime you needed when you needed it. For us to have saved for the down payment we would be buying it about now. 12 years of throwing away money on rent, and raising our daughter in an apartment.
Now you're just being hostile. You don't know me or my background. We can either keep this discussion civil or we can end it right now. Your choice.
The second point, I guess asking FM/FM to buy those mortgages might not have been the best idea, but letting those banks fail, that close to the economic damage of 911 would have been a good idea?
Why is it a good idea for the federal government to use taxpayer dollars to bail out the banks for their own speculative practices?
By the way, what is NATF, I find no reference to this anywhere on the web. Are you really implying that all the sub prime bought by FM/FM were illegals that year? Millions? All those illegals bought houses with sub prime mortgages in the 2 years Bush had been President?
New Alliance Task Force. (See: Linking International Remittance Flows to Financial Services: Tapping the Latino Immigrant Market)
Are you really implying that all the sub prime bought by FM/FM were illegals that year? Millions? All those illegals bought houses with sub prime mortgages in the 2 years Bush had been President?
First, Bush was President for 8 years, not 2. He was elected in 2000 and inaugurated in 2001. All of these policies were put into place during his first term.
Second, not all, but the vast majority of FM/FM sub-prime loans were targeted to Mexican illegal aliens.
From my link above:
Targeting the Unbanked Latino Immigrant Population
Several other key barriers contribute to the high number of unbanked immigrants, primarily a limited ability to understand and speak English and cultural distrust of financial institutions. These barriers create real challenges. However, in Chicago and other parts of the Midwest, organizations are bringing unbanked Latino immigrants into the financial mainstream with the right mix of innovative products, financial education programs, effective outreach programs, and a strong commitment from banks to serve this market, all of which are being facilitated by the development and activities of a few organizations, including the New Alliance Task Force (NATF).
| New Alliance Task Force |
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The NATF was launched in May 2003 by the Consulate General of Mexico in Chicago and the Chicago Office of the FDIC's Community Affairs Program in support of the U.S.-Mexico Partnership for Prosperity. The NATF is a broad-based coalition of 62 members, including the Mexican Consulate, 34 banks, community-based organizations, federal bank regulatory agencies, government agencies, and representatives from the secondary market and private mortgage insurance (PMI) companies. The majority of the participating financial institutions are community banks in Illinois, Indiana and Wisconsin. The coalition's programs and initiatives address the critical need among Mexican immigrants, both established and recently arrived, to successfully develop asset-building strategies to improve their quality of life in the United States. This goal is critical as Latinos continue to have lower homeownership rates and less access to mainstream financial services and credit instruments.
In addition to promoting general educational opportunities for immigrants, NATF members sponsor financial education programs and are developing financial products that include remittance features and mortgage products that help immigrants overcome barriers to homeownership.
The NATF's Financial Education Working Group educates immigrants on the benefits and importance of holding accounts, the credit process, and mainstream banking as an alternative to the "fringe" banking system. Ten thousand immigrants have participated in financial education classes and workshops using the FDIC's Money Smart, a Spanish-language adult financial education curriculum, and similar financial education programs in the Chicago area. A number of delivery channels exist, including financial institutions, churches, housing organizations, job training centers, and community colleges. In addition to these programs, the Mexican Consulate of Chicago, in collaboration with local banks, launched a financial education program in Spanish in January 2004. Several institutions donated simulated ATMs to train immigrants on banking technologies.
The NATF Bank Products and Services Working Group encourages banks and thrifts to develop financial service products with remittance features as a strategy to reach the unbanked immigrant community. In recent years, banks in the Midwest have begun to realize the significant dollar amounts generated by remittance transfers and have taken steps to break down some of the barriers preventing immigrants' access to the banking system. Community banks in Chicago and Milwaukee, for example, have taken the lead in offering international remittance services. Second Federal Savings and First Bank of the Americas were the first community banks in the country to accept the Mexican Matricula Consular card and develop remittance products through dual ATM cards. Soon afterward, Mitchell Bank and North Shore Bank in Milwaukee followed suit. These institutions are aware that many immigrants, regardless of their current immigration status, will eventually settle in this country. This offers an opportunity for banks to cross-sell other products and offer a wider range of financial services.
Fifteen of the 34 NATF banks are now offering products with remittance services that allow immigrants to open bank accounts, avoid high-cost wire services, and incur lower remittance costs for sending money back home. Dual ATM cards or stored-value cards offer the lowest transfer cost: 1.5 percent of the amount sent.29 In the past two years, 50,000 new accounts totaling $100 million (with an average account balance of $2,000) have been opened at NATF banks in the Midwest. Many of these accounts were opened using the banks' remittance services. Other NATF banks, including South Central Bank and Lakeside Bank, are using the Federal Reserve System's recently unveiled FedAutomated Clearing House International Mexico Service as a cost-effective alternative to expensive wire transfers.30
Conclusion
Recent economic and demographic trends, coupled with increased financial flows across international borders, have significant implications for U.S. banks and thrifts. As more insured financial institutions reach out to the Latino immigrant market, these institutions are expected to experience more rapid deposit and loan growth. In the Midwest, both small and large banks are capitalizing on remittance flows as a short-term strategy to draw immigrants into the formal banking system. Leveraging these relationships will help these institutions offer a broader range of financial services, positively contributing to their bottom line.
Many Latino immigrants will eventually settle in the United States and raise families. Banks in the Midwest are taking steps to capitalize on the growing presence of this immigrant group. The continued success of the New Alliance Task Force demonstrates that unbanked Latin American immigrants can be brought into the financial mainstream. As a result, the FDIC is considering the feasibility of expanding the NATF pilot to other parts of the country where there are significant immigrant populations. These broad-based private-public sector alliances will help immigrants increase savings, build assets, and strengthen their financial security.
So, how many Mexican illegal aliens are we talking about? The link above gives us a general idea.
"As an example of the effectiveness of using this form of identification, Wells Fargo opened more than 400,000 new accounts for Mexican immigrants, using the Matricula Consular card between November 2001 and May 2004. In recent months, Wells Fargo has averaged 22,000 new accounts per month, many of which feature the bank's remittance product.20 For example, the bank offers InterCuenta Express, an account-to-account wire transfer service that charges $8 to transfer up to $3,000 per day directly into a beneficiary's bank account in Mexico. Transfers can be initiated at the bank's branch or ATM in the United States, and the receiving party can access monies via the bank's sizeable remittance distribution network of more than 4,000 banking offices and 10,700 ATMs in Mexico. According to the Mexican government, 178 banks in the United States accept the Matricula Consular card to open bank accounts; 86 of these institutions are in the Midwest."
Keep in mind this is just Wells Fargo and that sub-prime lending would not reach its peak until 2005-2007. This does not include all the other major banks, such as CitiGroup, Bank of America, Chase, Washington Mutual, or the hundreds of other smaller regional banks and lenders who were also taking part in this feeding frenzy.
Here’s the thing.
First I apologize for getting snarky. I was not having a good posting day yesterday.
The fact I was trying to make, and I know it’s anecdotal, was I knew far more blacks, and whites that took advantage of the sub prime loans, and down payment assistance than immigrants,(The foreclosure rates by race back this evidence) and trust me Charlotte, and all of NC has more than it’s fair share of immigrants, legal, and illegal. Ann Coulter uses NC as an example of child sex charges by immigrants. Also that my wife and I took advantage of the down payment assistance. I’m glad it was there. Might be selfish, might be non-conservative, but sometimes doing the right thing for your family moves way to the front of the priority line. Heck at least I contributed to it with my taxes.
Using taxpayer dollars to bail out banks, and businesses is not a good idea, but after 911 we were much closer than most ever knew to a real economic collapse. We used taxpayer dollars to help prop up a lot of industries.
The main point I was trying to make about the statement from Trump was, W wasn’t the only one who deserved blame for the sub prime crash.
“Several administrations, both Democratic and Republican, advocated affordable housing policies in the years leading up to the crisis. The Housing and Community Development Act of 1992 established, for the first time, an affordable housing loan purchase mandate for Fannie Mae and Freddie Mac, a mandate to be regulated by the Department of Housing and Urban Development (HUD). Initially, the 1992 legislation required that 30 percent or more of Fannie’s and Freddie’s loan purchases be related to affordable housing. However, HUD was given the power to set future requirements, and eventually (under the Bush Administration) a 56 percent minimum was established.[235] To fulfill the requirements, Fannie Mae and Freddie Mac established programs to purchase $5 trillion in affordable housing loans,[236] and encouraged lenders to relax underwriting standards to produce those loans.[235]
“The National Homeownership Strategy: Partners in the American Dream”, was compiled in 1995 by Henry Cisneros, President Clinton’s HUD Secretary. This 100-page document represented the viewpoints of HUD, Fannie Mae, Freddie Mac, leaders of the housing industry, various banks, numerous activist organizations such as ACORN and La Raza, and representatives from several state and local governments.”[237] In 2001, the independent research company, Graham Fisher & Company, stated: “While the underlying initiatives of the [strategy] were broad in content, the main theme … was the relaxation of credit standards.”
Turns out I misread the article, and that wasn’t what Trump said anyway (told you I was having a bad posting day yesterday). However clearly this ball started rolling during the Clinton Administration.
Yes W. made mistakes, but so did banks, and democrats, and the republicans in congress.
To me the biggest culprit in the sub prime incident was the education system in this country. We don’t teach kids how to read, not to sign a contract with out understanding what they read, simple economics, and budgeting, and we’ve become such a covetous society that people believe they deserve what their neighbor has whether they can pay for it or not. If we still had education, most people would know better than to sign a house note that was going to quadruple in 4 years.
Fair enough FRiend?, Again, I am like you and try to stay civil, and apologize again for snarling.