1999 NY Times Article Revealed True Cause of Current Fannie Mae Crises

NewsBusters ^ | September 25, 2008 | P.J. Gladnick

[PJ-Comix]

This is probably an article that the New York Times wishes it didn't have in its archives because it reveals the true culprits behind the current Fannie Mae meltdown. You will find "uncomfortable" truths in this September 30, 1999 article by Steven A. Holmes starting with the title, "Fannie Mae Eases Credit To Aid Mortgage Lending," that you won't find in current editions of the New York Times (emphasis mine):

In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.

Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.

[GeorgiaDawg32]

page 47, below the fold, next to the obituaries..

[Diana in Wisconsin]

Clinton. The gift that just keeps on giving. Like the clap.

[anonsquared]

Or “It depends on what your definition of EXPAND is.”

[lonestar67]

Great quote here:

‘’From the perspective of many people, including me, this is another thrift industry growing up around us,’’ said Peter Wallison a resident fellow at the American Enterprise Institute. ‘’If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.’’

[Grampa Dave]

Could you go to the Slimes and copy that article and post it here, in case Pinch decides to erase it.

[Pagey]

bttt

[Mikey_1962]

EGGGSACTLY!

[FreeperinRATcage]

mark for reference

[nw_arizona_granny]

Ping.

[DoughtyOne]

Great snag PJ-Comix!

[Virginia Ridgerunner]

BTTT

[DoughtyOne]

Another great find... thanks.

[DoughtyOne]

Still another great find. Thanks. Sorta nails the left doesn’t it. Race baiting sure pays off... /s

[Paine in the Neck]

"It provides hope that one day we can relegate red-lining...to the yellow pages of old history texts," Holder said in USA Today.

The same Eric Holder who would have a very prominent role (AG?) in an Obama administration.

[READINABLUESTATE]

excellent thread!

[rockthecasbah]

bookmark

[Publius6961]

BUMP!

[TexasCajun]

''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.''

[TexasCajun]

"It provides hope that one day we can relegate red-lining...to the yellow pages of old history texts," Holder said in USA Today.

[KeatsforFirstDog]

bttt