Wait! Let’s not start parroting the 8 year drumbeat anti-Bush propaganda from the leftwing media. Bush tried several times to reform Freddie and Fannie but was stopped by Frank and others. The encouraging of easy lending began under Clinton, and what I remember is, before the Dems took over Congress in 2007, the economy was doing well, with unemployment (real unemployment) at 5-6%, the DOW at 14K, and inflation not what it is now. Although I don’t think W was a great president, he certainly was much better than what we have now. On top of that, unlike Carter and Clinton, the man has showed a lot of class as ex-president.
The proposed Fannie and Freddie reforms addressed minimum capital standards and the sheer size of the two firms. But if you think that Dubya was trying to reign in the irresponsible lending that was driving the bubble you’re mistaken. He was adding fuel to the fire:
“Bush seeks to increase minority homeownership”
By Thomas A. Fogarty, USA TODAY
In a bid to boost minority homeownership, President Bush will ask Congress for authority to eliminate the down-payment requirement for Federal Housing Administration loans.
In announcing the plan Monday at a home builders show in Las Vegas, Federal Housing Commissioner John Weicher called the proposal the “most significant FHA initiative in more than a decade.” It would lead to 150,000 first-time owners annually, he said.
Nothing-down options are available on the private mortgage market, but, in general, they require the borrower to have pristine credit. Bush’s proposed change would extend the nothing-down option to borrowers with blemished credit.
The FHA isn’t a direct lender, but guarantees loan payments for mortgages on moderately priced owner-occupied property. The FHA guarantee now permits private lenders to finance as much as 97% of the purchase price of a home for millions of low- and middle-income borrowers.
In the proposal soon to be delivered to Congress, Bush would allow the FHA to guarantee loans for the full purchase price of the home, plus down-payment costs. As a practical matter, the FHA would guarantee mortgages as high as 103%...”
http://www.usatoday.com/money/perfi/housing/2004-01-20-fha_x.htm