FANNIE MAE EASES CREDIT TO AID MORTGAGE LENDING (1999)

NEW YORK TIMES ^ | September 30, 1999 | By STEVEN A. HOLMES

[Brad from Tennessee]

WASHINGTON, Sept. 29— 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. . .

[Brad from Tennessee]

This story reads like a prophecy of doom. Bill Clinton had HUD Secretary Andrew Cuomo loosen Fannie and Freddie lending rules to allow banks to make millions of risky loans the mortgage giants then bought from the banks. During the terms of Clinton appointees Franklin Raines, Fannie Mae CEO, and Board Member Jamie Gorelick, massive losses were concealed from shareholders and Congress while both institutions became insolvent. Raines walked away with $90 million in salary and bonuses, Gorelick pocketed $26 million.

[Parley Baer]

Yes, government intervention was the reason for the financial collapse. Now Obama is trying to blame Wall Street while it was his cronies lead by Dodd, Frank and the Black caucus among others that are to blame.

[AmusedBystander]

Great reminder that it is not all “Bush’s fault”.

[Mr. Jeeves]

In a move that could help increase home ownership rates among minorities and low-income consumers...

NOT a desirable goal...except to banks who want to securitize the loans and sell them off and to politicians who want to buy votes from all the new home "owners".

But it takes political courage to state that people who don't have the money don't deserve to own houses.

[Obadiah]

Excellent! The antidote to the lefties who always seek to alter historical facts because history ALWAYS demonstrates that they are wrong.

[HereInTheHeartland]

Fannie and Freddie used to be risk averse and serve a good purpose.
Stuff like this helped to undermine their good work.

[opentalk]

not again,

responsible people who follow the rules get the shaft, while funding the lefts fraud.

[opentalk]

just read date, there needs to be an audit of both freddie and fannie

[Murp]

I remember watching congressional hearings where Janet Reno warned banks about “redlining”. Threatened legal action if they didn’t begin to loan money in areas that were obviously high default risks. The rest of the story comes from this!!

[Texas resident]

Remember all those tv commercials hawking zero down and zero interest mortgages? No credit? No problem. blah,blah,blah. Figured out pretty quick that that was going to be a big time bomb that would go off down the road. Just another time bomb that the klintoon regime left us.

[easttennesseejohn]

It is a fact that Fannie & Freddie are to be exempt form BO’s wall street reform. Amazing. Maybe not so amazing.

[givemELL]

In order for a socialist state to redistribute property/wealth, it must find and execute ways to get the property into its possession. The mortgage programs of Fannie and Freddie, now that they are fully nationalized institutions, fill the bill. The goal is to get as much private real-estate into govt. hands as soon as possible....then redistribute it at leisure. And so, the exercised tool of wealth and property transfer continues on as this article describes.

The middle class currently has value to socialists as voting instruments and property/wealth holders...when the wealth/property is gone, transferred, perhaps it’s value to socialists as voting instruments will go as well if all this is permitted to happen.

[Brad from Tennessee]

Yeah, that seems to be the plan. I think also at play were cash kickbacks on a massive scale as well as millions in campaign contributions.