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1999 NY Times Article Revealed True Cause of Current Fannie Mae Crises
NewsBusters ^ | September 25, 2008 | P.J. Gladnick

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 ...


TOPICS: Business/Economy; Front Page News
KEYWORDS: bailout; economy; fanniemae; financialcrisis; franklinraines; housingbubble
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To: PJ-Comix

“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.


41 posted on 09/25/2008 2:53:31 PM PDT by yazoo
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To: Palladin

Just fiction? I think NOT!!!
Well, New Jersey maybe but Chicago has a reputation of honesty and transparency. It couldn’t happen there. /s


42 posted on 09/25/2008 2:55:47 PM PDT by Joan Kerrey
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To: Grampa Dave

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?


43 posted on 09/25/2008 3:33:41 PM PDT by PJ-Comix (Join the DUmmie FUnnies PING List ---The BIGGEST on the FR!!!))
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To: PJ-Comix

Thanks.


44 posted on 09/25/2008 3:37:54 PM PDT by Grampa Dave ( I do not want to know the type of person, who does not like Sarah !)
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To: PJ-Comix
"...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..."

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.

45 posted on 09/25/2008 3:46:46 PM PDT by Pagey (Sarah Palin has Mayoral AND Governors' Experience---B. Hussein Obama has NEITHER!!!!! LOLOL)
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To: Pagey

PREDICTING, Of course.


46 posted on 09/25/2008 3:47:25 PM PDT by Pagey (Sarah Palin has Mayoral AND Governors' Experience---B. Hussein Obama has NEITHER!!!!! LOLOL)
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To: PJ-Comix

BOOM


47 posted on 09/25/2008 3:58:44 PM PDT by Deetes ( (God Bless the Troops) .)
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To: EEDUDE
Giving home loans to people who cannot afford them does them no favor.

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.

48 posted on 09/25/2008 4:24:04 PM PDT by Trailerpark Badass (Happiness is a choice!)
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To: PJ-Comix

bookmark


49 posted on 09/25/2008 4:42:23 PM PDT by Monitor ("...I love my country more than I hate John McCain..." - Kim du Toit)
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To: PJ-Comix

bump


50 posted on 09/25/2008 5:33:46 PM PDT by Inyokern
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To: Joan Kerrey

Oh, yes...Chicago is unsullied by mafioso, slumlords, machine politics, and community organizers! /s


51 posted on 09/26/2008 2:18:12 PM PDT by Palladin (Sarahnoia will destroy ya!)
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