Feds Pushed Subprime Loans Execs Say

The Bulletin ^ | December 12, 2008 | Michael P. Tremoglie

[William Tell 2]

Mortgage CEO's admit the government pressured them to make bad loans.

http://thebulletin.us/articles/2008/12/12/business/doc4941ec5fa6214999572928.txt

[William Tell 2]

http://thebulletin.us/articles/2008/12/12/business/doc4941ec5fa6214999572928.txt

[JimRed]

By “the government” they mean appointed bureaucrats, RAT party variety, I’m sure. Too bad they won’t just come out and say it.

[VRWCmember]

Mortgage CEO's admit the government pressured them to make bad loans.

That sentence makes me laugh. It reminds me of Dyan Cannon in Heaven Can Wait: "I confess, HE DID IT."

[Still Thinking]

One of my concerns with the auto bailout is similar. I don't support bailouts in general and don't support this one, but I do have this issue: What if the lackluster performance of the Big 3 is due in substantial measure to legislative meddling from the very ones to whom they now turn to be bailed out. Washington is saying that coupled with the bailout must more oversight and some concessions (evidently thigs the big 3 wouldn't have legally had to do before). This is general sounds reasonable. If you want my help, you'll have to give me something I want and allow me to try to make sure this doesn't happen again.

But if the failures are in some significant part due to overregulation and other sins of Washington, they're in the position of being able to demand more control and concessions because of the results of their previous failed attempts at running car companies! And that I CAN'T stomach.

[freespirited]

It’s always easy to point the finger at someone else. But in this case, the attempt to spread the blame around is supremely credible.

[stevio]

Bush was involved in this too. I remember a few years back, Rush touting the fact that minority home ownership was up under the Bush administration. This is why the government was so quick to bail them out.

[Doogle]

COBURN: In 2007, GM sold 9.37 million cars worldwide. Toyota, that same year, sold 9.37 million cars worldwide. GM lost 38.7 billion. Toyota made 17.7 billion. Therein lies the problem.

[Still Thinking]

I know there’s a lot of that, but I’m not convinced that regulation hasn’t played a role as well. (And obviously it would have to be something the Big three are more inept at dealing with than are other car makers)

[Repeal The 17th]

When the federal government offers to stand behind and guarantee loans,
whether those be housing loans, student loans, or small business loans,
they do not have to push, force, or coerce the money lenders.
Simply by offering the guarantee, they have eliminated “risk”
from the normal traditional loan equation.
Lenders loan the money and agents get their commission without
having to worry about the borrowers actual ability to repay the loan
all because “Uncle Sugar” is there to “bail them out”.
My point being that simply by setting up the programs in the first place,
there was no need to “force” the bankers and lenders
to try to grab as much cash as they could from the system.

[b4its2late]

U.S. Rep. Michael Turner, R-Ohio, asked Mr. Raines if the Community Reinvestment Act (CRA) provided the “fuel” for increasing subprime loans. Mr. Raines acknowledged the legitimacy of his point. He said it could have been possible they acted as a catalyst. But, he added, it was difficult to know if a policy went from participating in the market to encouraging bad behavior.

It absolutely was. The banks were so adamant to have others have to do the same as they did, that they tried to get credit unions to do the same thing, but most credit unions already serve the underserved and Congress never mandated a CRA type act for credit unions, luckily, or credit unions would be in the same boat.

[Just mythoughts]

I sure wish I had taken literal notes when some functionary of the government was pushing no money down loans upon my son 3+ years back. My son was a recent college graduate with a decent new hire job, no debt, but also no credit history, and very little money in the bank. Without a credit history he was given a method in how to get someone -me- to create one. I told him to flee these people as I was not creating him a credit history using their methodology.

I also remember that screeching speech Hillary Clinton gave to her Connecticut high dollar donors regarding a coming Bush/Hoover economy. This collapse did not happen all on its own. Just that Hillary expected to be the one in charge of leading US out of their self made collapse.

[Doogle]

aren’t the other car makers under the same regs?

[raybbr]

By “the government” they mean appointed bureaucrats, RAT party variety, I’m sure. Too bad they won’t just come out and say it.

Well, those appointed bureaucrats were appointed by Bush - Mel Martinez and Alphonso Jackson (Sectretaries of HUD from 2001 to 2007). Both are minorities and were appointed to push loans to minorities.

[RDasher]

COBURN: In 2007, GM sold 9.37 million cars worldwide. Toyota, that same year, sold 9.37 million cars worldwide. GM lost 38.7 billion. Toyota made 17.7 billion. Therein lies the problem.

WOW! On the same sales volume, GM lost $4130 / car while, Toyota earned $1889 each.

[quack]

American Dreeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeaaaaaaaam!!!!!!!!

[raybbr]

aren’t the other car makers under the same regs?

The others are operating in states that have more lax regs and they are assemblers not true manufacturing.

Imagine the govt regs in Michigan as opposed to those in Mississippi.

[GOPJ]

Ummm, in a related flash, sun’s coming up in the east tomorrow.

[ladyjane]

“The goals came from HUD (U.S. Department of Housing and Urban Development) and meeting those HUD goals created pressure,” Mr. Mudd said.

Mr. Mudd blames HUD and not his self-described fiance Congressman Barney.

[Doogle]

now consider 2006,2005,2004,....recent union actions as far as contracts