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No, it didn't. Housing underperformed for quite some time in the 1990's, even while the economy boomed and the stock market went parabolic.
false...I dont care what your made up chart says
Homeowners Record Is Set in Third Quarter
By STEVEN A. HOLMES
Published: November 1, 1997
Independent analysts, as well as those in the Clinton Administration, say that the rising number of homeowners -- including many, like Ms. Crittendon, who are first-time buyers -- is the result of several factors. These include low interest rates, low unemployment, rising incomes, a number of Federal assistance programs, increased competition among mortgage lenders, and better enforcement of fair-housing laws.
''It's not just that it's a strong economy,'' said Andrew M. Cuomo, Secretary of Housing and Urban Development. ''It's that people are willing to believe that they'll have a job long term, that their house will appreciate and that their incomes will grow.''
These increases stem in part from rising incomes and lowered unemployment among minorities and single women. The rise is also the result of several policies adopted by the Bush and Clinton Administrations. Starting in 1991, for example, Federal regulators, when asked to approve bank mergers, began to include a bank's lending history in low- and moderate-income areas as part of their review.
In 1993, Congress ordered the two Federally chartered lending companies, Fannie Mae and Freddie Mac, to increase their loans to low- and moderate-income borrowers. In 1995, seeking to save his department from elimination by the newly elected Republican-led Congress, Housing Secretary Henry G. Cisneros adopted a ''national homeownership strategy'' that eased requirements to qualify for Federal Housing Administration-insured loans and reduced closing costs by as much as $1,200 on those loans for first-time buyers.
Homeowners Record Is Set in Third Quarter - NYTimes.com
Homeowners Record Is Set in Third Quarter - NYTimes.com (http://www.nytimes.com/1997/11/01/us/homeowners-record-is-set-in-third-quarter.html?scp=66&sq=1995+fannie&st=nyt - broken link)
from the NYT no less....you are going to tell me that A RECORD set in 1997 is no gain?????
Housing in the New Millennium: A Home Without Equity is Just a Rental with Debt
Joshua Rosner
Graham Fisher & Co.
June 29, 2000
Abstract:
This report assesses the prospects of the U.S. housing/mortgage sector over the next several years. Based on our analysis, we believe there are elements in place for the housing sector to continue to experience growth well above GDP. However, we believe there are risks that can materially distort the growth prospects of the sector. Specifically, it appears that a large portion of the housing sector's growth in the 1990's came from the easing of the credit underwriting process. Such easing includes:
* The drastic reduction of minimum down payment levels from 20% to 0%
* A focused effort to target the "low income" borrower
* The reduction in private mortgage insurance requirements on high loan to value mortgages
* The increasing use of software to streamline the origination process and modify/recast delinquent loans in order to keep them classified as "current"
* Changes in the appraisal process which has led to widespread overappraisal/over-valuation problems
If these trends remain in place, it is likely that the home purchase boom of the past decade will continue unabated. Despite the increasingly more difficult economic environment, it may be possible for lenders to further ease credit standards and more fully exploit less penetrated markets. Recently targeted populations that have historically been denied homeownership opportunities have offered the mortgage industry novel hurdles to overcome. Industry participants in combination with eased regulatory standards and the support of the GSEs (Government Sponsored Enterprises) have overcome many of them.
If there is an economic disruption that causes a marked rise in unemployment, the negative impact on the housing market could be quite large. These impacts come in several forms. They include a reduction in the demand for homeownership, a decline in real estate prices and increased foreclosure expenses. These impacts would be exacerbated by the increasing debt burden of the U.S. consumer and the reduction of home equity available in the home. Although we have yet to see any materially negative consequences of the relaxation of credit standards, we believe the risk of credit relaxation and leverage can't be ignored. Importantly, a relatively new method of loan forgiveness can temporarily alter the perception of credit health in the housing sector. In an effort to keep homeowners in the home and reduce foreclosure expenses, holders of mortgage assets are currently recasting or modifying troubled loans. Such policy initiatives may for a time distort the relevancy of delinquency and foreclosure statistics. However, a protracted housing slowdown could eventually cause modifications to become uneconomic and, thus, credit quality statistics would likely become relevant once again. The virtuous circle of increasing homeownership due to greater leverage has the potential to become a vicious cycle of lower home prices due to an accelerating rate of foreclosures.
i gather from your posts that you don't know what the CRA is.
i'll give you a hint: it's not the same thing as Fannie Mae.
no apparently you dont understand
the CRA:
The Community Reinvestment Act (CRA, Pub.L. 95-128, title VIII of the Housing and Community Development Act of 1977, 91 Stat. 1147, 12 U.S.C. § 2901 et seq.) is a United States federal law designed to encourage commercial banks and savings associations to help meet the needs of borrowers in all segments of their communities, including low- and moderate-income neighborhoods.
The Act requires the appropriate federal financial supervisory agencies to encourage regulated financial institutions to help meet the credit needs of the local communities in which they are chartered.
In July 1993, President Bill Clinton asked regulators to reform the CRA. By early 1995, the proposed CRA regulations were substantially revised to address criticisms that the regulations, and the agencies' implementation of them through the examination process to date, were too process-oriented, burdensome, and not sufficiently focused on actual results.
Many criticized both the 1993 and 1994 sets of proposals for political favoritism in allocating credit, for micromanagement by regulators and for the lack of assurances that banks would not be expected to operate at a loss to achieve CRA compliance. They predicted the proposed changes would be very costly to the economy and the banking system in general.
In the fall of 1999, Senators Christopher Dodd and Charles E. Schumer amend the Federal Deposit Insurance Act (12 U.S.C. ch.16) to allow banks to merge or expand into other types of financial institutions.
In a 1998 paper, Alex Schwartz of the Fannie Mae Foundation found that CRA agreements were "consistently successful in meeting their goals for mortgages, investments in low-income housing tax credits, grant giving to community-based organizations, and in opening (and keeping open) inner-city bank branches.
In 1997, the first publicly available securitization of Community Reinvestment Act loans, issuing $384.6 million of such securities. The securities were guaranteed by Freddie Mac and had an implied "AAA" rating. The public offering was several times oversubscribed, predominantly by money managers and insurance companies who were not buying them for CRA credit.
In October 2000, to expand the secondary market for affordable community-based mortgages and to increase liquidity for CRA-eligible loans, Fannie Mae committed to purchase and securitize $2 billion of "MyCommunityMortgage" loans.
In November 2000 Fannie Mae announced that the Department of Housing and Urban Development ("HUD") would soon require it to dedicate 50% of its business to low- and moderate-income families." It stated that since 1997 Fannie Mae had done nearly $7 billion in CRA business with depository institutions, but its goal was $20 billion.
In 2001 Fannie Mae announced that it had acquired $10 billion in specially-targeted Community Reinvestment Act (CRA) loans more than one and a half years ahead of schedule, and announced its goal to finance over $500 billion in CRA business by 2010, about one third of loans anticipated to be financed by Fannie Mae during that period.
The wealth gap will continue to widen so long as the GOP has anything to say about it. Making certain the wealthy get wealthier at the expense of everyone else is the core of their political party.
The wealth gap will continue to widen so long as the GOP has anything to say about it. Making certain the wealthy get wealthier at the expense of everyone else is the core of their political party.
The wealth gap will continue to widen so long as the GOP has anything to say about it. Making certain the wealthy get wealthier at the expense of everyone else is the core of their political party.
if it is the GOP's fault here in the USA...then WHO is to blame on the WORLD WIDE increase in the "wealth gap"
The wealth gap will continue to widen so long as the GOP has anything to say about it. Making certain the wealthy get wealthier at the expense of everyone else is the core of their political party.
So what happened in 2009 and 2010 when the Dems had total control ?
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