NY Post: The Real Scandal (Mortgage Meltdown)

The New York Post ^ | February 5, 2008 | STAN LIEBOWITZ

[Orbiting_Rosie's_Head]

PERHAPS the greatest scandal of the mortgage crisis is that it is a direct result of an intentional loosening of underwriting standards - done in the name of ending discrimination, despite warnings that it could lead to wide-scale defaults.

[Orbiting_Rosie's_Head]

An older article from Feb., but appropriate in light of The Obamessiah's and other Dem's blaming of Bush for the Fiasco. Follow the money back through time to the Community Reinvestment Act and its relationship to the Gramm-Leach-Bliley Act

Better yet, Google Jimmy Carter Community Reinvestment Act, or ACORN Community Reinvestment Act.

[Cementjungle]

Better yet, Google Jimmy Carter Community Reinvestment Act, or ACORN Community Reinvestment Act.

Or, more importantly, Bill Clinton's amendment to it in 1994.

[paul in cape]

FANNIE-GATE

POST HERE

[IrishCatholic]

bookmark for later.

[JasonC]

The real scandal my friends is that everyone is spinning blame and no one gives a tuppenny damn about actually fixing the bleeding problem! Guess what? You can blame whoever the heck you like from a soup line. Good luck with that!

[GOPPachyderm]

Where is John Galt? Is Atlas shrugging?

[HereInTheHeartland]

” intentional loosening of underwriting standards - done in the name of ending discrimination,”

Yes..

[GOPJ]

At the crisis' core are loans that were made with virtually nonexistent underwriting standards - no verification of income or assets; little consideration of the applicant's ability to make payments; no down payment.

And at the core of the core are the dems of Freddie and Fannie..

[JrsyJack]

Does anybody know how Biden and McCain voted on the CRA and or G-L-B?

[GOPJ]

You fix the system by taking the pipe dreamers off the case and rewriting the rules so they jive with reality.

[Shannon]

In the 1980s, groups such as the activists at ACORN began pushing charges of "redlining" - claims that banks discriminated against minorities in mortgage lending.

No wonder B. Hussein Obama is blaming this mess on Bush. I'm sure he wants to deflect attention away from ACORN's role.

[silverleaf]

http://banking.senate.gov/public/

http://banking.senate.gov/public/index.cfm?FuseAction=Articles.Detail&Article_id=626fa0c4-fca8-4bbc-9d8f-153744f69523&Month=2&Year=2007

Senator Dodd, number one recipient of lobby funds from FNMA since 1989 (with Obama being #2)

Feb, 2007

“For many years, the battle so many of us fought was to make credit available to neighborhoods that had been redlined, or to people, particularly minorities, who felt the sting of rejection regardless of their creditworthiness.

In response to this injustice, and after years of hard work by people like Reverend Jackson, Hilary Shelton, and many, many others, we passed the Community Reinvestment Act and the Fair Housing Act, so that credit to buy a home or build a business would be available to all Americans.

As a result, we have seen homeownership grow. Every one of us has spoken about homeownership – how it provides stability and a chance to build wealth for the vast majority of Americans. It is the most valuable asset that most of us own. Our homes provide us with a financial cushion on which we can draw to send our children to college, pay for unexpected health care expenses, or finance a secure retirement.

To the extent that the creation of the subprime market has added to this flow of credit in a positive and constructive way, in a way that helps build wealth – I welcome the development.”

Chris Dodd, Chairman Senate Banking Committee and grateful receipient of a preferential Countrywide mortgage

[JasonC]

There isn't anyone in the room who isn't a pipe dreamer! You are all stark raving mad with partisan ideological spin and useless floods of unadulterate crap! Got it?

If you want to play partisan blame, you can play it from the bottom of an African cesspool with AK-47s and casual murder in broad daylight. Got it? Or you can call a bleeding time out and save the burning building you are bawling and squabbling over.

[Orbiting_Rosie's_Head]

We need many people to research this. BO is blamming Gramm for the debacle, but the orginal GLBA passed the Senate on a near party-line vote (Hollings voted yea) that scaled back the CRA. However, BJ threatened a veto, the bill was rewritten (to strengthen CRA), and it sailed through 90-8. I want to know who was the behind the rewrite, what, if any amendments there were, and what the real story is.

Icky People

Senate Votes to Drop Barriers Between Nation's Financial Industries

I couldn't find a follow-up on the NYT piece about the second 90-8 vote.

[Kozak]

Dude, take your meds.....

[editor-surveyor]

I knew God had to have a boss , but I never dreamed that it was JasonC.

[Orbiting_Rosie's_Head]

The real scandal my friends is that everyone is spinning blame and no one gives a tuppenny damn about actually fixing the bleeding problem! Guess what? You can blame whoever the heck you like from a soup line. Good luck with that!

The first step in fixing a problem is to properly identify it, lest you heap more folly.

[Prokopton]

The real scandal my friends is that everyone is spinning blame and no one gives a tuppenny damn about actually fixing the bleeding problem! Guess what? You can blame whoever the heck you like from a soup line. Good luck with that!

It's usually a good idea to figure out what caused the "bleeding problem" before deciding how to fix the "bleeding problem". Flailing your arms about no one doing anything to "fix" the problem is of little value. IMHO, of course.

[editor-surveyor]

Thank you Jimmy C!

[GOPJ]

What on earth are you talking about.