Posted on 07/16/2015 5:10:14 AM PDT by expat_panama
2016: If only Wall Street bankers had listened to St. Hillary during the subprime mortgage frenzy. She now claims she warned about the risky loans. Yep, a Clinton actually went there. Her campaign may regret it.
While bashing Wall Street for risky acts and "criminal behavior," Clinton in her first economic stump speech portrayed herself as the voice of financial sanity in a casino of wild greed.
"As we all know, in the years before the crash, financial firms piled risk upon risk," she intoned, "and regulators in Washington either wouldn't or couldn't keep up.
"I was alarmed by this gathering storm and called for addressing the risks of derivatives, cracking down on subprime mortgages and improving financial oversight," she added.
This is revisionism at its most shameless. For starters, Hillary never raised any subprime alarms until...
[snip]
...bragged about creating the subprime securities market on Wall Street. According to the book "The Great American Bank Robbery":
• When Bill Clinton took office in 1993, subprime mortgage credit was a sliver of the overall credit market; but by the time he left in 2001, it accounted for about 25% of home equity credit outstanding.
• The number of subprime mortgages originated by lenders soared to 997,000 by 1998 from 104,000 in 1993. • Subprime mortgage activity grew an average 25% a year from 1994 to 2003, outpacing the rate of growth for prime mortgages.
Regulators didn't "keep up" with the subprime bubble because they were too busy inflating it — on orders from Clinton.
Clinton HUD secretary Andrew Cuomo, for one, plunged Fannie Mae and Freddie Mac into the fringe subprime market, announcing in a 2000 HUD report, "(Their) expanding presence in the subprime market could be of significant benefit to lower-income families, minorities and families living in underserved areas."
(Excerpt) Read more at news.investors.com ...
Ms Cattle Futures calls for reforms
Hillary knows she can say whatever she wants. The enemedia will spread it as gospel and only a handful of FReepers with actual memories will know.
it’s true.
Clinton forced banks to loan to low income and minorities as he thought that home owners made better citizens.
Problem is banks loaned money to folks who could NEVER pay off said mortgages.
Whoa, futures traders are saying "let the good times roll" for stock indexes +0.38% but not metals (-1.0%) after yesterday's profit taking in both. Reports:
8:30 AM Continuing Claims
8:30 AM Initial Claims
8:30 AM Continuing Claims
10:00 AM Philadelphia Fed
10:00 AM NAHB Housing Market Index
10:30 AM Natural Gas Inventories
4:00 PM Net Long-Term TIC Flows
btw, if next time I miss one of these pings it seems this guy's been lurking and is doing this morning format better than me even.
Mean old banks, they used the fact that the gov't threatened to confiscate their assets and jail everyone as an excuse to loosen loan requirements. The recession's all their fault so let's prosecute them.
Another Clinton appointee---Fannie Mae CEO Franklin Raines---asserted his position on sub-prime lending in a letter to stockholders.
==============================================
GENESIS OF THE SUB-PRIME BILKING OF TAXPAYERS
Clinton appointee, Fannie Mae CEO Franklin Raines, Pens a Letter to Shareholders
Excerpted from Raines 2003 Fannie Mae Annual Report
Excerpt ...Ten years ago the typical conforming mortgage required a down payment of 10-20%, and low-down payment mortgages were considered too risky. But then we helped to standardize the 3-5% down payment loan, brought it to global capital markets, and made it available to lenders and communities nationwide. Now low-down payment loans are commonplace. And we just adopted a new variance in our underwriting standards that will make the $500 down payment loan widely available as well...
In 1994, we pledged to provide $1 trillion in capital to ten million underserved families by the end of 2000. Thanks to our housing and industry partners, we met that goal early.
Then in 2000, we launched our American Dream Commitment, a pledge to provide $2 trillion in capital to 18 million underserved families by the year 2010, including $400 billion targeted specifically for minority families (later raised to $700 billion in response to President Bush’s Minority Homeownership Initiative). After four of the strongest years in housing and mortgage finance history, we’ve already surpassed the top-line goals of this commitment. But our work is far from complete.
So in January 2004, we announced our Expanded American Dream Commitment and pledged significant new resources to tackle America’s toughest housing challenges. Our new commitment has three main goals.
First, we will expand access to homeownership for six million first-time home buyers in the next ten years, including 1.8 million minority first-time home buyers.We also will help raise the national minority homeownership rate from 49 percent to 55 percent, with the ultimate goal of closing it entirely.
Second, we will help new and long-term homeowners stay in their homes through a series of initiatives, and commit $15 billion to preserve affordable rental housing and $1.5 billion to support the revitalization of public housing communities.
Third, we will increase the supply of affordable housing and support community development activities in at least 1,000 neighborhoods across the country through our American Communities Fund, and through targeted investments like Low-Income Housing Tax Credits that help finance affordable rental housing.
It is because of initiatives like our Trillion Dollar Commitment and our American Dream Commitment that we have exceeded our HUD affordable housing goals for ten consecutive years. (End Raines excerpt.) (NOTE Raines is a Clinton appointee)
===============================================
NOTE: Raines was fired for being a crook---Raines cooked theF/M books to get bonuses. But he walked away a multi-millionaire---extorting millions from taxpayers for pensions, bonuses, lifetime healthcare, donations to his fave charites....etc, etc, and so on, and so forth, ad infinitum ad nauseaum.
If ANYONE knows ‘criminal behavior’ it’s this beotch! She is SUCH a JOKE! Go. Away.
You gotta love government. They lean on the banks to make bad loans and when it blows up they don’t consider looking in the mirror they just vilify “the banks” as predators.
And if elected she will do it again in order to placate her gimmedat base.
He was really fired for creating bad publicity. Jamie Gorelick, Clinton tool, prospered from Fannie Mae. And this is after she created the "Chinese Wall" that prevented inter-agency exchange of information on terror threats, which played a part in enabling 9/11.
--and that IRS, you really gotta hand it to 'em...
http://georgewbush-whitehouse.archives.gov/news/releases/2003/12/20031216-9.html
“President Bush Signs American Dream Downpayment Act of 2003”
THE PRESIDENT: Thank you all. Thank you for coming. Thanks for the warm welcome. It’s great to be back at the Department of Housing and Urban Development. This is not my first time here, nor will it be my last. (Applause.) I am here today because we are taking action to bring many thousands of Americans closer to owning a home. Our government is supporting homeownership because it is good for America, it is good for our families, it is good for our economy.
During the signing ceremony of S. 811, The American Dream Downpayment Act, President George W. Bush delivers remarks at the U.S. Department of Housing and Urban Development in Washington, D.C., Tuesday, Dec. 16, 2003. “One of the biggest hurdles to homeownership is getting money for a down payment,” said President Bush. “This administration has recognized that, and so today I’m honored to be here to sign a law that will help many low-income buyers to overcome that hurdle, and to achieve an important part of the American Dream.” White House photo by Paul Morse One of the biggest hurdles to homeownership is getting money for a down payment. This administration has recognized that, and so today I’m honored to be here to sign a law that will help many low-income buyers to overcome that hurdle, and to achieve an important part of the American Dream.
I appreciate Alphonso Jackson agreeing to step up and become the Acting Secretary of the Housing and Urban Development. I look forward to his Senate confirmation, a hasty confirmation. (Applause.)
I also want to thank Mel Martinez for doing such a fine job as the Secretary of this important organization. Mel brought integrity and honor to the office. He did a fine job on behalf of all Americans. And we honor you, Mel. (Applause.)
I want to thank all the hardworking officers and employees of HUD. I appreciate your focus and your dedication, your willingness to work on behalf of a better America. (Applause.) I thank very much members of the Congress who have taken time to come and join us for this important bill signing. Senator Wayne Allard from Colorado is with us. Senator Allard, thank you for your work on the floor of the Senate. (Applause.) Chairman of the Financial Services Committee, Mike Oxley, is with us. Congressman, thank you for coming. (Applause.) Congressman Jim Leach from Iowa is with us today. Congressman, thank you for being here. (Applause.) Congresswoman Katherine Harris, who had a lot to do with this bill getting passed, is here with us. Katherine, thank you for coming. (Applause.) Delegate Madeleine Bordallo of Guam is with us today. I’m honored you are here. Thank you for coming, Madeleine. I appreciate you coming. (Applause.)
I, too, want to pay homage to a man I call “Little Woody” — that would be Rob Woodson. He worked hard in the development of this policy. I think it is safe to say that he was the — he developed the concept for this policy, a concept embraced by my administration. I’m appreciative that Michelle is here. I also want to thank Dad for coming — Bob Woodson, who is a social entrepreneur, a person who cares deeply about every American having the right and a chance to own a home. Thank the Woodson family. God bless you all. (Applause.)
I want to thank the representatives of the consumer and housing groups that worked hard on this piece of legislation. I want to thank leaders of the national community organizations that are with us, and members of the real estate industry.
This administration will constantly strive to promote an ownership society in America. We want more people owning their own home. It is in our national interest that more people own their own home. After all, if you own your own home, you have a vital stake in the future of our country. And this is a good time for the American homeowner. Today we received a report that showed that new home construction last month reached its highest level in nearly 20 years. (Applause.)
The reason that is so is because there is renewed confidence in our economy. Low interest rates help. They have made owning a home more affordable, for those who refinance and for those who buy a home for the first time. Rising home values have added more than $2.5 trillion to the assets of the American family since the start of 2001.
The rate of homeownership in America now stands a record high of 68.4 percent. Yet there is room for improvement. The rate of homeownership amongst minorities is below 50 percent. And that’s not right, and this country needs to do something about it. We need to — (applause.) We need to close the minority homeownership gap in America so more citizens have the satisfaction and mobility that comes from owning your own home, from owning a piece of the future of America.
Last year I set a goal to add 5.5 million new minority homeowners in America by the end of the decade. That is an attainable goal; that is an essential goal. And we’re making progress toward that goal. In the past 18 months, more than 1 million minority families have become homeowners. (Applause.) And there’s more that we can do to achieve the goal. The law I sign today will help us build on this progress in a very practical way.
Many people are able to afford a monthly mortgage payment, but are unable to make the down payment. So this legislation will authorize $200 million per year in down payment assistance to at least 40,000 low-income families. These funds will help American families achieve their goals, and at the same time, strengthen our communities.
And there’s more to do, as well. We’ll continue to pursue a broad agenda to help people own a home. There are three steps I want to describe to you right quickly about what we intend to do. First, those who apply for mortgages should be made aware of all the costs and warned about predatory lenders who take advantage of inexperienced buyers. So we’ve doubled the funds for housing counseling services, including those run by faith-based and community groups.
We understand that buying a home for the first time is complicated, and we want to simplify the process. We want to help people understand the pros and cons of buying a home. We want people to be fully aware of what it means to buy a home and what it takes. And we want people as best protected as possible from those shysters who would take advantage of first-time buyers. (Applause.)
Second, we need to make the home-buying process more affordable. Some of the biggest up-front costs in a home purchase are the closing costs. Sometimes they catch you by surprise. (Laughter.) Many home buyers do not have the time to shop around looking for a better deal on closing costs. You’re kind of stuck with what you’re presented with. And so they end up paying more than they should. So we’ve proposed new rules to make it easier for buyers to shop around and to compare prices on closing costs, so they can get the best deal and the best service possible.
And thirdly, we want to make buying a home simpler. Many first-time buyers look at the paperwork from a loan application, and frankly, get a little nervous about all the fine print. Those forms can be intimidating to the first-time home buyer. They can be intimidating to the second or third-time home buyer, too. (Laughter and applause.) So this administration has proposed new rules to simplify the forms home buyers and homeowners fill out when they apply for a loan or close on a mortgage.
We understand that buying a home is a big step, and so these three recommendations we’re making, these three changes in the rules will make that step easier; will enable people to make the step to buying a home — they’ll be able to do so with more confidence. These are practical ways that we are working to expand homeownership across the country.
The dream of homeownership should be attainable for every hardworking American. That’s what we want. In this act of Congress I’m going to sign, the regulations that I hope are finalized soon will help thousands of families fulfill the dream.
And so now it my honor, right here at this important Department, the Department responsible for encouraging homeownership in America, to sign the American Dream Downpayment Act. (Applause.)
(The bill is signed.) (Applause.)
The majority of loans made during the bubble were made by institutions not covered by the CRA. Investment banks, hedge funds, pure mortgage lenders, anyone not a deposit taker was free to do exactly as they pleased and they were in the non-conforming subprime market because it was extremely profitable.
While many say that, the "Bush-fault" idea is still controversial:
Considering how the left is beginning this all over again now (Obama Justice Department Forces Banks to Make Risky Loans) mho is that it's definitely now "all Bush's fault".
Who decided it was a good idea to saddle the poor with a mortgage? I know there are benefits to owning your own home but just like everything else there are pros and cons. If you’re living paycheck to paycheck taking on a huge payment for the next 30 years is not a plus. It also limits their re-location possibilities. Renters can move a lot more freely.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.