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Do those who blame Bush for housing bubble/economic collapse hate facts, or just ignorant to them?

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 addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans.

''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.''

Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market.

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.

http://www.nytimes.com/1999/09/30/business/fannie-...

Update:

Buzzkill-

These are called FACTS. This is what happened. Sorry it doesn't fit your narrative.

Update 2:

Blu-

I didn't type that. It's copied from the NY Times. An article with facts. I know you don't know what that means.

See, you care about approval ratings. OPINION. I care about what actually happened. FACT.

See the difference?

8 Answers

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  • 9 years ago
    Favorite Answer

    That pretty much sums it up.

    Liberals in Congress through Fannie Mae and Freddie Mac strong-armed banks into giving out mortgages people simply could not afford. It's blew up in our face.

    Why do you think Banks are not allowed to consider someone being on welfare (which is suppose to be temporary assistance, not permanent income) when determining their ability to repay a loan?

    Why did Liberals do it? Buying votes.

  • 9 years ago

    Bush had years to see that and do something about it.

    Have you ever noticed how close the Bush family and the Clinton family is? That's why I would not vote for a Clinton.

    You could see that the Clinton's and the Bush family were following the same agendas. The house and senate also went along with most of what they wanted.

    You dont see that happening with Obama.

    Obama has to fight for everything he told the people he would do and they are still trying to block everything.

    Its time to replace most of the house and the senate so the president can do the peoples bidding, it is what he was voted in to do.

  • 9 years ago

    Im a conservative Republican and I have to disagree with you about the whole fannie mae and Freddie mac being forced to give loans ordeal.

    No one can be forced by the Government to make loans when its private money, The problem is "Guaranteed Loans" or government back loans which the tax payer is on the hook on.

    This is a widespread problem because major loan companies lobby politicians to pass legislation's to make sure their loans are government back, as a result they could care less who they lend it to as long as they lend it to as much people as possible.

    As a result

    -97% of all mortgages in the US are government backed.

    -A majority of all private student loans are Government backed

    -Many car loans are now Government backed.

    -Bank deposits are government backed.

    -Privately owned houses in areas prone to catastrophes are government backed.

    And there might be more.

    This issues are caused by mainstream politicians in general and destroying the country, if you want to know more about this search youtube videos of a guy name "Peter Schiff".

    Point being Obama nor Bush could do anything about this as it is a mainstream problem with the fiscal system in the US.

  • 9 years ago

    Everyone already blames the repeal of Glass-Steagall, which happened under Clinton's watch, for the mortgage crisis. Your article was written two weeks after the Republicans repealed it.

  • Anonymous
    9 years ago

    GWB left office w/ the lowest approval rating in history. I suspect you fail to come to grips w/ how you voted for a mistake.

    All the words that you typed are right wing rhetoric that by design are fashioned to tell people like you what you want to hear.

  • Anonymous
    9 years ago

    So that explains all of it? That is about 10% of what happened. Explain to be the sub-prime mortgage companies? How about u debate me on it?

  • Anonymous
    9 years ago

    Barney's Frank is just rolling around in his little apartment, laughing at what he did while entertaining his fat boyfriend.

  • ?
    Lv 5
    9 years ago

    Liberals are allergic to facts.

    Facts make them look bad.

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