LOL
How'bout a nice game of two party/Fabian Socialist ping-pong?
Posted on 09/06/2012 3:18:00 AM PDT by Son House
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.
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 and felt pressure from stock holders to maintain its phenomenal growth in profits.
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.''
By expanding the type of loans that it will buy, Fannie Mae is hoping to spur banks to make more loans to people with less-than-stellar credit ratings.
In July, the Department of Housing and Urban Development proposed that by the year 2001, 50 percent of Fannie Mae’s and Freddie Mac’s portfolio be made up of loans to low and moderate-income borrowers. Last year, 44 percent of the loans Fannie Mae purchased were from these groups.
(Excerpt) Read more at nytimes.com ...
Businesses need to profit, and profits come from managing cost. Cost like taxes and complying with government regulation.
Anyone trying to assert increasing taxes and more regulation are going to improve the economy is selling a con that isn't logical. Growing the economy will not the real consequence of these policies.
Being Obama says the Republican have old ideas, I would like to ask Democrat supporters;
1. Name each of Obama’s new ideas that are supposed to improve the economy?
2. Please detail exactly how each of them are supposed to improve an economy?
Hey, this doesn’t follow the “Bush’s fault” script.
I wish the Republicans would remind the public how we REALLY got into this mess.
“I wish the Republicans would remind the public how we REALLY got into this mess.”
The housing part is the easiest; Dems forced banks to make loans to unqualified buyers under threat of discrimination charges, then turned around and said they deceived the minority buyers when they defaulted. For the worst of the housing problems one need look no further than that.
Other foreclosures were caused by hardworking people losing their jobs, but not the “redlined” ones - they were redlined for a reason.
Nice post. Sorta like clues to a cold case file. I like this one myself..... http://www.nytimes.com/2003/09/11/business/new-agency-proposed-to-oversee-freddie-mac-and-fannie-mae.html
Bump
Socialism can work if we just get the right people in place to implement it.
Gotta raise the BS flag on this one. The CRA was signed into law by peanut head in 76’. The law was strengthened by slick willie in 96’. The new yuk times had to have researched this in 99’.
Personally think the CRA, and the resultant bundled derivatives trading caused not only the housing bubble but its collapse. Voila, economic collapse caused by a social justice focused law, and big government’s “stimulating” response.
I wish they’d remind them too. Instead of agreeing that he inherited a mess, they need to explain how we got there. This is a good place to start along with the provable fact that Obama sued banks to force them to issue sub prime loans to people who couldn’t afford them. That was back in his community organizing days when he was a lawyer. Which reminds me, Romney might want to ask about the law license he no longer holds. Neither does Michelle.
I wish they’d remind them too. Instead of agreeing that he inherited a mess, they need to explain how we got there. This is a good place to start along with the provable fact that Obama sued banks to force them to issue sub prime loans to people who couldn’t afford them. That was back in his community organizing days when he was a lawyer. Which reminds me, Romney might want to ask about the law license he no longer holds. Neither does Michelle.
ping
How subprime lending all started in O.C. (Ameriquest - Roland Arnall)
Orange County Register ^ | 30 Dec 2007 | JOHN GITTELSOHN
Godfathers of subprime
Established in 1979 by Roland Arnall, Long Beach Savings grew rapidly after Wall Street opened the credit tap. It moved to Orange in 1991 and gave up its banking license in 1994, converting to a pure mortgage company.
In 1997, Long Beach Savings split into privately-held Ameriquest and a publicly traded subsidiary, which sold for $350 million in 1999 to become the subprime arm of Washington Mutual Inc.
Other companies were started by executives who learned the ropes at Long Beach Savings: ResMae Mortgage Corp. in Brea in 2001 and Encore Credit Corp. in Irvine in 2002.
Godfathers of subprime
Established in 1979 by Roland Arnall, Long Beach Savings grew rapidly after Wall Street opened the credit tap. It moved to Orange in 1991 and gave up its banking license in 1994, converting to a pure mortgage company.
In 1997, Long Beach Savings split into privately-held Ameriquest and a publicly traded subsidiary, which sold for $350 million in 1999 to become the subprime arm of Washington Mutual Inc.
Other companies were started by executives who learned the ropes at Long Beach Savings: ResMae Mortgage Corp. in Brea in 2001 and Encore Credit Corp. in Irvine in 2002....
{fahgedaboudit. Notin' to see there, moooove along}
Thanks for the headsup.
somebody had a nice video of barney frank blasting the bush admin as racist for this...wish i could find it.
LOL
The two Mexicans shysters colluded with a latino BofA insider----Donny Gonzales---to falsify bank documents. Father and son shysters---Juan and Harold Rangel---- ran Spanish language ads in Cali--and got $35 million from about 500 latino homeowners----hamburger flippers, lawn mowers, and such, who cannot even speak English. One latino woman had $200,000 to invest (that she lost to the Mexican shysters).
Where do these "impoverished" latinos get all this money to invest? The answer is they too are scamming---they are scamming the US govt and stealing from taxpayers. American taxpayers working for a living are slaving to pay taxes and household expenses----but these latinos are pouring over the border to rig the system for themselves---riding the US gravy train under multiple fraudulent identities. And jerks like Obama are aiding and abetting these frauds.
========================================================
The Congressional Hispanic Institute, Inc, is an entity organized by Cong Joe Baca (D-Cali) in his capacity as head of the Congressional Hispanic Caucus.
Cong Baca created "HOGAR" (Spanish for home) in 2003 to work with the mortgage industry, lender and banks and latino community groups to increase mortgage lending to what savvy observers considered to be unqualified Latinos.
"HOGAR" colluded w/ Cong BAca in what was to become a massive bilking of taxpayers. Cong Baca calculatedly hyped the fact that the national Latino homeownership rate was 47%, compared with 68% for the overall population.
HOGAR was coached to call the figure "alarming," and to say "a concerted effort was required to ensure that by the end of the decade Latinos will share equally in the American Dream of home ownership."
HOGAR and Cong Baca conned the public, failing to note that most of the "dreamers" were illegals, citizens of Third World countries who had violated US borders.
Predictably, HOGAR colluded w/ co-conspirators which included:
(a) shaky mortgage companies that ran into big trouble;
(b) Fannie Mae and Freddie Mac, both now under federal control after billions in taxpayer bailouts;
(c) Countrywide Financial Corp., sold to Bank of America Corp;
(d) Washington Mutual Inc., taken over by the US government and sold to J.P. Morgan Chase & Co.; and,
(e) New Century Financial Corp. and Ameriquest Mortgage Corp, both now defunct, killed by defaulted subprime Latino mortgages.
HOGAR's ties to the subprime mortgage industry were substantial. Bribery and self-dealing were rampant:
<><> Companies that donated $150,000 to Cong Baca got the right to have their own research fellow who would conduct fraudulent studies, which were cunningly used by industry lobbyists to pump lending.
<><> Bribery and extortion in the form of $100,000 annual donations to Cong Baca, for which HOGAR provided phony news releases from Cong Baca's Hispanic Caucus promoting a lender's commercial products to the Latino market,
<><> The most shocking example of bribery well-substantitated by Hogar's literature..... HOGAR announced it worked with Freddie Mac on a self-serving two-year examination of Latino homeownership in 63 congressional districts.
The "study" found Hispanic ownership on the rise thanks to "new flexible mortgage loan products" that the industry was adopting at the urging of Cong Baca's collusive coterie.
<><> HOGAR conned lenders into even more lenient down-payment and underwriting standards.
<><> As the subprime debacle unfolded, HOGAR declined repeated requests for comment despite the economic havoc their activities precipitated.
The mortgage schemes demonstrated the criminal activities of border violators with multiple identities---perhaps violent, terrorist-connected foreigners---colluding and conspiring to defraud private companies and public entities. And mortgage racketeering enterprises which employed sub rosa finance and business practices to carry out deceptions and frauds.
The alleged ring of swindlers---a Congresman, individuals with multiple identities, banks, insurance companies, mortgage nrokers--might be charged with cheating the US govt, taxpayers and bank share holders out of hundreds of millions of dollars via an elaborate web of mortgage and bank frauds.
The mortgage Dreamers used multiple phony identities, fraudulent Social Security numbers, purchased from identity forgers in order to obtain govt-subsidized benefits.
L/E will find that individuals with multiple identities obtained fraudulent mortgages then flipped the houses at ever- higher prices to family member who then absconded to foreign countries, sticking banks (and taxpayers) with hundreds of millions in fraudulent mortgages.
BACKGROUND A Wall Street Journal investigative report related that, according to the Federal Financial Institutions Examination Council examination of the borrowing spree, uncovered financial schemes by low-income housing groups, Hispanic lawmakers, a congressional Hispanic housing initiative, mortgage lenders and brokers, all colluding in fraduent schemes to increase homeownership among Latinos with forged documents which enabled massive fraud.
This was not simply the mortgage market at work. It was fueled by avarice, greed, and Congressional enabling fraudulent practices. In 2005 alone, mortgages to Hispanics jumped by 29%; Latinos with multiple fraudulent identities in low-paying jobs obtained subprime mortgages for prime properties---soaring to 169%.
(Research provided by Wall Street Journal. Some material excerpted from the NY Times
[I wish the Republicans would remind the public how we REALLY got into this mess.]
What, and unearth Roland Arnall from his golden Subprime
RINO-sarcophagal closet?
Same reason the RINOs won’t go after Penny Pritzker.
Not. Gonna. Happen.
Meanwhile, in reality land...
Lender Lobbying Blitz Abetted Mortgage Mess
Wall Street Journal ^ | 31 Dec 2007 | GLENN R. SIMPSONDuring the housing boom, the subprime industry succeeded at more than just writing mortgages. It also shot down efforts by some states to curtail risky lending to borrowers with spotty credit.
Ameriquest Mortgage Co., until recently one of the nation's largest subprime lenders, was at the center of those battles. Working with a husband-and-wife team of Washington lobbyists, it handed out more than $20 million in political donations and played a big role in persuading legislators in New Jersey and Georgia to relax tough new laws. Those victories, in turn, helped blunt efforts by other states to crack down on reckless lending, critics of the industry contend....
First they bought votes by making loans and homes available to those incapable of paying the mortgage.
Second, they enriched themselves by bundling and selling the mortgage backed securities, and “credit default swaps”.
Jammie Gorelick, and Franklin Raines, each made TENS of MILLIONS of dollars off of this scheme, and belong in jail. (Yes, there are others Sen. Dodd and Franks)
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