[PJ-Comix]

Any chance that the NY Times will reprint its own article so their readers can see the true cause of the mortgage loan crises? That possibility is probably somewhere between nil and none.

[FreeperinRATcage]

mark for reference

[nw_arizona_granny]

Ping.

[DoughtyOne]

Great snag PJ-Comix!

[Virginia Ridgerunner]

BTTT

[READINABLUESTATE]

excellent thread!

[rockthecasbah]

bookmark

[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.''

[yazoo]

“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.

[Pagey]

"...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.

[Deetes]

BOOM

[Monitor]

bookmark

[Inyokern]

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