NYT 1999: Fannie Mae Eases Credit To Aid Mortgage Lending

The New York Times | 1999 | By STEVEN A. HOLMES

[Fred Nerks]

FYI. Receipe for disaster circa 1999.

Fannie Mae, the nation's biggest underwriter of home mortgages, does not lend money directly to consumers. Instead, it purchases loans that banks make on what is called the secondary market. By expanding the type of loans that it will buy, Fannie Mae is hoping to spur banks to make more loans to people with less-than-stellar credit ratings.

[MrPiper]

Thanks John,,, bumped to Rush and congress critter.

[AFPhys]

BullsEye

Congress and the ‘Toon administration forced this upon the American taxpayer in the name of ‘making home ownership easy’ for people who couldn’t afford it.

Bad, bad move... Thanks for posting this NYSlimes article, that really for once, is worth having for the record.

[doug from upland]

[doug from upland]

Jim Strickland also wrote about it in our favorite fishwrap, the LA TIMES -

http://www.freerepublic.com/focus/f-news/2086640/posts

[Chode]

do I really have to say it???

[DTogo]

Why all the intolerance here towards minorities, and people with less-than-stellar credit ratings?

/sarc

[Typical_Whitey]

Spin baby Spin, Obama and the Democrats complicit in this whole mess but the Media holds them blameless and ques in on Bush... Americans are hypnotized by the Pravda and by their new Messiah who they belive can do no wrong.

This will never get reported in the Main stream..

[Virginia Ridgerunner]

Of IMMEDIATE interest..............!

[XR7]

BTTT

[Virginia Ridgerunner]

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.

Just damn...

[ken21]

roger hedgecock is one of the few public people that i agree with almost all the time.

[Virginia Ridgerunner]

Someone needs to run over to Wikipedia and edit this crook's entry...

Andrew Cuomo

[Boiling Pots]

It’s still McCain’s fault.

[Virginia Ridgerunner]

Check this out folks! It needs to be spread far and wide!

[P-Marlowe]

So it only took 9 years for political correctness to bankrupt the country.

Can we have a do over?

Are there still tea boats in boston harbor?

[VOA]

The smoking gun. The Clinton administration was behind this fiasco.

And what did Dubya do to put an end to this?

That's an honest question.
He may have tried, but I failed to hear about it in the MSM
(maybe they just didn't report it!)

Current reading in The Wall Street Journal simply quotes Dubya
as saying there was a place for government to help people into
homes (in 2004)...
with an accompanying quote from McCain in 2008 saying the government
shouldn't guarantee any home loan unless the buyer is putting down
a substantial down-payment.

I respect Dubya for all he's done to protect the country.
But on the issue of the mortgage debacle, he seemed to be a
cheerleader, surely with all the good intentions and faith in
the average Joe/Josephine to utilize these loans to good advantage
in getting into a house and eventually building equity.

Maybe in this one mess, Dubya had TOO much faith in his fellow citizens.

[AFPhys]

yeah, maybe there was a reason bank haven’t loaned to these people... but then we had to be PC - to the tune of trillions of dollars of bad loans. aren’t we compassionate?

[quadrant]

The whole business stinks. The federal government has destroyed the banking system by this idiotic attempt to provide housing the “poor”.

[My Favorite Headache]

Clinton again...back where we started from with FR.