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Why did Republicans try to stop Chris Dodd from fixing the sub-prime loan problem?
Source: Business Week Online
In early 2007, as overextended borrowers began to default on too-good-to-be-true subprime mortgages, housing experts sounded an alarm heard throughout Washington. Christopher Dodd (D-Conn.), chairman of the Senate Banking Committee, wanted to push a bill requiring banks to modify loans whose enticingly low "teaser" interest rates soon give way to tougher terms. But he knew that with Republicans strongly opposed, he lacked the muscle, according to Senate aides. So Dodd did what politicians often do. He convened a talkfest: the Homeownership Preservation Summit.
A who's who of banking executives gathered on Apr. 18, 2007, behind closed doors in an ornate hearing room in the marble-faced Dirksen Senate Office Building. Dodd told them they needed to get out in front of the foreclosure fiasco by adjusting loan terms so borrowers would continue to make some payments, rather than stopping altogether. Foreclosure proceedings typically cost banks about 50% of a property's value. That's assuming the home can be resold -- not a certainty when empty houses multiply in a neighborhood. "What are you doing?" Dodd asked the executives. "What do you need me to do to help you modify loans?"
http://news.yahoo.com/s/bw/20090213/bs_bw/0908b412...
Is this why Republicans constantly vilify Christopher Dodd, because he's actually trying to fix the problem?
"Senate Banking Committee spokeswoman Kate Szostak says Dodd aggressively pursued the foreclosure issue, but "both the industry and the Bush Administration refused to heed his warnings.""
9 Answers
- William SLv 71 decade agoFavorite Answer
Why did Bill Clinton start the whole mess in the first place?
- evlmaLv 41 decade ago
Chris Dodd obstructed Bush and McCain from applying regulation to Freddy Mac and Fannie Mae, calling them heartless because they wanted to regulate lending to high risk borrowers. Dodd has received a huge amount of money from Fannie and Freddy, more than any other in congress.
Frank, Dodd, Waters, Reid and others resisted the curtailment of Fannie and Freddy's fraudulent activity saying nothing was wrong, nothing could possibly happen with the housing industry or credit industry over that.
LIFE IN JAIL IS TO GOOD FOR DODD, FRANK, REID, AND WATERS and more of the criminals who got us in this mess.
Barry OBAMA is also in this fraud UP TO HIS NECK! He got more money than anyone from Freddy and Fannie during his time in the Senate. Now no one will prosecute those who have pulled the worst fraud in history on the US and put us in these hard economic times.
The GOP stopped Dodd? WOW, that is just RICH!
- Anonymous1 decade ago
Some of the people on here wouldn't know how to check facts, nor read them if it's anything against their party. That's why our country is in the mess it's in. This is why, watch the thumbs down I get when I state this fact:
In 1999, Fannie Mae came under pressure from the Clinton administration to expand mortgage loans to low and moderate income borrowers. At the same time, institutions in the primary mortgage market pressed Fannie Mae to ease credit requirements on the mortgages it was willing to purchase, enabling them to make loans to subprime borrowers at interest rates higher than conventional loans. Shareholders also pressured Fannie Mae to maintain its record profits.
In 2003, the Bush administration recommended significant regulatory overhaul of Fannie Mae and Freddie Mac. However, the Democrats opposed that proposal, fearing that tighter regulation could sharply reduce financing for low-income housing, both low and high risk.
- thetunakLv 41 decade ago
Maybe Chris Dodd shouldn't be the authority on mortgages. He allegedly received a very favorable rate through the Countrywide VIP program, receiving a lower rate than market. When questioned and asked to show his HUD statement and mortgage papers, he couldn't produce them for over 6 months.
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- Jonny BLv 51 decade ago
Why should deadbeats get to have their rates adjusted when they signed a contract with their bank already? Thats not fair to people who pay on time. Barney Frank is to blame for this fiasco! Here is a link of a video with Barney Frank saying Freddie and fannie are just fine in the early 2000s.
- cfb193Lv 51 decade ago
This is a joke right. Chris Dodd, was the problem along with Barney "suck it up" Franks. They should both be in prison.
- whimsyLv 61 decade ago
The folks of the GOP find it difficult to accept personal responsibility for their actions...
They loved big business, too much, at the country's expense.
Source(s): Godzilla is my co-pilot - Anonymous1 decade ago
You obviously did not read this entire article. lol
