Posted on 09/25/2008 1:31:16 PM PDT by 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.
(Excerpt) Read more at newsbusters.org ...
“will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans.”
This article was written in 1999. I’m sure it’s just a coincidence that the housing bubble began in early 2000.
Just fiction? I think NOT!!!
Well, New Jersey maybe but Chicago has a reputation of honesty and transparency. It couldn’t happen there. /s
We can’t post entire NY Times articles here because of terms of service. Why don’t you go there and copy to your computer?
Thanks.
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.
"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".
Peter Wallison, talk about perdicting the future, just WOW.
PREDICTING, Of course.
BOOM
But it does make some people feel better about themselves.
Yeah, that's kinda the liberal ethos in a nutshell.
Infantilize people, strip away their humanity, make them victims of circumstance "beyond their control," and then treat them with the arrogance of a Greek god.
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Oh, yes...Chicago is unsullied by mafioso, slumlords, machine politics, and community organizers! /s
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