'Reform' missed 'friends of Angelo'

NY Post ^ | July 27, 2010 | STEPHEN B. MEISTER

[Scanian]

Democrats claim their sweeping financial-sector reforms will guard against the kind of problems that triggered the recent economic meltdown. But if they really wanted to do that, they would've focused on how so many US officials were simply . . . bought. Fat chance.

Nonetheless, Rep. Darrell Issa (R-Calif.), ranking member of the House Committee on Oversight and Governmental Reform, is demanding just such a review -- and, for the sake of the nation, he should get one.

Last week, Issa wrote to Alfred Pollard, general counsel to the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, asking for a probe of "VIP" mortgage loans given to Fannie and Freddie executives by Countrywide Financial Corporation. He also disclosed that Senate staffers got 30 low-rate mortgages under the program.

Founder Angelo Mozilo built Countrywide into the nation's largest mortgage lender, with a portfolio at one point worth $1.4 trillion, by selling billions in mostly subprime loans to Fannie and Freddie. Clinton Attorney General Janet Reno, using the anti-redlining statute -- the Community Reinvestment Act -- relentlessly pressured banks to make loans to "the underserved." But the banks could not make enough subprime mortgage loans to satisfy our lawmakers unless the federal government bought the loans they originated. That's where Fannie and Freddie came in.

[ErnBatavia]

Clinton Attorney General Janet Reno, using the anti-redlining statute -- the Community Reinvestment Act -- relentlessly pressured banks to make loans to "the underserved." But the banks could not make enough subprime mortgage loans to satisfy our lawmakers unless the federal government bought the loans they originated. That's where Fannie and Freddie came in.

The root of the meltdown in a nutshell......why this doesn't fly in the face of the "It's Bush's fault" 'rats is beyond me....info that needs to be hammered constantly.

[ballplayer]

Never mind the Democrats ,Where is Sarah Palin,Newt Gingrich,Mitt Romney,Michelle Bachman?
The Republicans are as Much to Blame as the Democrats IMHO,because they DONT pound this every waking hour of every day. But if they did a lot of things Might be differentbut they go along . We are all being had folks ,Do you hear anyone talking about the Outrage of Obamacare,no its the same old Crap ,tax cuts for the rich,THis election should be about the saving of the Republic and all we get is Republicans are for the rich and the Republicans are for Big Oil and tax cuts for the Rich ,Democrats are for the Down trodden. What a Bunch of SUCKERS

[libertylover]

The root of the meltdown in a nutshell......why this doesn't fly in the face of the "It's Bush's fault" 'rats is beyond me....

I think you know very well the reason. It's simply because they're Democrats and the established media simply will not go after one of their own criminals, not even when a governor and sitting president conspire to sell a Senate seat.

[Aggie65]

So you voted for Obama to get your hope and change and now want to blame Republicans for this. Where were you when George Bush tried to get Fannie and Freddie under control. Probably watching the rats on hte Sunday talk shows lambast hte idea and state that Fannie and Freddie were sound. By watching the Sunday clap, you keep there ratings up. It is time they went.