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Why do people think that Clinton put the CRA on steriods in 1999?
pushing Fannie Mae and Freddie Mac to increase the number of sub-prime loans?
In fact F&F were barely players in the market. Here is an article from Bloomberg, but any research into this will say the same:
"virtually none of the $1.5 trillion of cratering subprime mortgages were backed by Fannie or Freddie. That’s right — most subprime mortgages did not meet Fannie or Freddie’s strict lending standards. All those no money down, no interest for a year, low teaser rate loans? All the loans made without checking a borrower’s income or employment history? All made in the private sector, without any support from Fannie and Freddie. "
And by the way. No one who blames F&F is messagable here.
1 Answer
- Anonymous10 years agoFavorite Answer
I do know that subprime lending was increased nearly 300% during the Bush administration.