Zero-down mortgage initiative by Bush is hit

Boston Globe ^ | October 5, 2004 | Chris Reidy

[WilliamIII]

President Bush's weekend campaign promise that he will push legislation allowing for no money down on some federally insured mortgages could cost taxpayers as much as $500 million over four years because of a higher rate of defaults, according to the Congressional Budget Office.

The election-year idea may appeal to those who can't save as fast as home prices are rising. But some financial planners warn that increasingly common no- and low-down-payment programs can be ruinous for some consumers -- especially if home values decline.

If housing prices fall, consumers with little or no money of their own invested in the home are more vulnerable to ending up with mortgages larger than the value of the house.

[CommieCutter]

I have no problem accepting the fact that Bush continued a doomed policy that was in place before he became president.

Let’s just make sure that we admit where it started:http://theaffordablemortgagedepression.com/2010/03/11/origin-of-the-housing-bubble-the-national-homeownership-strategy.aspx

http://www.huduser.org/publications/txt/hdbrf2.txt

We also need to make sure to admit the Democrats basically told us there was NO bubble, and they haven’t repealed anything that, according to them, supposedly caused the problem i.e. GLB-act.

[Freedom_Is_Not_Free]

Dr. Thomas Sowell agrees with the OP. Jump ahead to 1:02

http://www.youtube.com/watch?v=E1KwkScA540

[CommieCutter]

I have no problem with that.Let’s just make sure we’re clear on the origins.

http://theaffordablemortgagedepression.com/2010/03/11/origin-of-the-housing-bubble-the-national-homeownership-strategy.aspx

[Freedom_Is_Not_Free]

Baby Bush was up to his neck with inflating the housing bubble. He was behind it 100%.

http://www.youtube.com/watch?v=GkAtUq0OJ68

[CommieCutter]

http://ochousingnews.com/news/mortgage-fraud-has-moved-from-subprime-to-fha

[Fresh Wind]

[Freedom_Is_Not_Free]

Yep, the New World Order globalist Baby Bush was into the housing bubble up to his neck. He was coming off a recession caused by the dot.com collapse and 9/11. He wanted to prop up GDP and he either let or instructed Alan Greenscam to blow a new bubble with Housing. Bush was fully behind the housing bubble and loved it.

[Freedom_Is_Not_Free]

I will say one thing for Baby Bush. I believe GW Bush and McCain wanted to reform Fannie Mae and Barney Frank and Dodd and Pelosi wouldn’t let him. So the commie Dems are 100% responsible for Fannie Mae and Freddie Mac. I don’t blame Baby Bush for the destruction of those entities. That is all on the commie Dems.

[DManA]

The other side of that coin is that NOTHING is Bush’s fault. He just spent 8 years smiling, waving, cracking jokes and being a good husband.

[Arrowhead1952]

I smell BushBot.

[DManA]

So all we care about are his intentions. His intentions were good. Where have we heard that before?

I couldn’t care less what he WANTED to do. He failed and that’s the credit I give him.

[dragnet2]

The Bush years were an utter disaster.

Listen to Bush’s speech, were he demanded home loans for totally unqualified minorities.

http://www.youtube.com/watch?v=MqR15H0gNBU

[Pelham]

“Without the illusion from institutions like the Lazard Investment backed (Just research all their lobyists and connections with F&F, Franklin Raines, lol) Fannie and Freddie, the “derivatives” would not have existed in the first place”

Well that’s pure, unadulterated nonsense.

Derivatives developed in London, England, during the 1990s.

They are assumed to be a byproduct of the American mortgage market by those, like you, who don’t know that they are talking about.

Anyone interested in discovering how and why derivatives were developed by the financial industry can read Gillian Tett’s ‘Fool’s Gold’.

Regarding Lazard, you should try reading the applicable research paper before ‘informing’ us that they have been bought off by Fannie and Freddie. Sometimes it helps to actually do some research:

http://www.lazardnet.com/lam/us/tpd/pdfs/Inv_Research_Mortgage_Crisis.pdf

[Ruy Dias de Bivar]

***The ‘Housing Bubble’ was in trouble long before this****

Let’s not forget the first housing bubble back in the late 1970s and 80s just after Jimmy Carter signed the Community Reinvestment Act into law. Lots of banks, Savings and loans and other lenders went belly up after that.

[hinckley buzzard]

MassHousing, the state's affordable-housing bank, has had a similar experience in the two years it has been offering loans with no down payment, said executive director Tom Gleason. They've performed well in a strong housing market and are likely to be "common in the future," he said. An unanswered question remains, he acknowledged: "We have no experience of how these loans will perform when the market is weak."

The question has now been answered. I recall Bush campaigning for "the ownership society" and pushing to reduce down payments. he didnt start the bubble inflating but he sure gave it a healthy boost.

[dragnet2]

The Bush years were an utter disaster.

Listen to Bush’s speech, were he demanded home loans for totally unqualified minorities.

http://www.youtube.com/watch?v=MqR15H0gNBU

[dragnet2]

The Bush years were an utter disaster.

Listen to Bush’s speech, were he demanded home loans for totally unqualified minorities.

http://www.youtube.com/watch?v=MqR15H0gNBU

[Pelham]

That sounds like Bush’s American Dream Downpayment Initiative speech that he gave to HUD.

If it’s the same speech he spends time praising Franklin Raines and Fannie Mae and explains why minority-pandering is a program that he applauds.

The transcript used to be available at the HUD website but I couldn’t find it the last time that I looked.

[khelus]

"My inner tinfoil hatter has caused me to wonder from time to time if there isn’t some actual, strategic reason to have encouraged such apparent malinvestment"

"I think it’s better explained by epidemic bad judgment on Wall Street. The mortgage and derivatives market began generating huge returns for financial firms, and they ignored warnings from their risk managers because the money was too good"

IMHO one does not exclude the other. Those who would bring this country down have been very shrewd in exploiting, aiding, and abetting the weaknesses of human nature such as rapacious greed and lust for power.

[DManA]

The origins are with the idea that the Federal Government is a force for good, that it is a tool that can and should be used aggressively to make the world a better place.

This is a view held by every single President, dem or rep, for 75 years. It was especially beloved by the Bushs, and I have no doubt Mitt Romney.