Obama critcizes banks for risky mortgages. (attorney, Kerry, compared, rating)
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If you read the Tempest post then surely you must have read the one before it from MOgal. You did read some of the links on that post, didn't you?
No, I don't think you did.
The time line started long before 2008, (by then it was too late) and both parties are at fault, but the mortgage & banking industry holds most of the responsibility and should get a great deal of the blame.
A lof of people responsible to go around. Your so right, both parties, mortgage and shady banking, home buyers, all share the blame.
To think this is just one sided, is plain sheer ignorance!
I guess you can prove that Fannie Mae and Freddie Mac were neither one involved in what you blame Bush for. Go ahead and do it, just for kicks. Since CRA was passed during the Carter administration I guess neither Carter, Reagan, or Clinton allowed some of that Mickey Mouse that Bush warned the Congress about from 2005 to the day he went out of office. Of course you do know why his 17 warnings to the Congress about what was going on was not paid any attention. I think that most of that problem was named Barney Frank and his Senator counterpart, Dodd.
I am saying that blaming Bush for all that crap we will have to suffer for many more years is just a bit silly, but then these days we do blame Bush for everything negative from the past 12 years. Whoops, he didn't take office till 2001.
Roy,
CRA's have gone delinquent/foreclosed at a lesser rate then other (non-CRA) loans made in the same areas. (Not all lenders needed to offer CRA's - 50% of subprime loans were made by mortgage service companies and 30% were made by banks or thrifts which were not subject to examinations).
So, CRA's failures add up to a small percentage of all the failed loans. The bad behavior and failure was created by the financial institutes. (and that includes Fred & Fanny). They did so for their own profit. (If the banking industry is unhappy with congress, they have enough pull, to correct anything they don't like. They must have been happy, because most were jumping in, head first)
Obama is 100% correct. Not to mention on top of that, Bush gave the banks that destroyed countless people's lives billions of dollars in bailouts paid for by the taxpayer.
The housing disaster is a perfect example of what happens when those hard right "less government!" "less regulations!" cries come true.
"give" bailouts? "Paid for by the taxpayers?" Really?
Did you know that TARP money carried above-market interest rates, came with all kinds of gov't control and strings, and earned a profit for the taxpayers?
Where does he mention that this was encouraged by the federal government?
Encouraged by removal of banking regulations and lending standards by the Bush admin 40 times, and encouraged by Alan Greenspan in 2004 when he went on TV to tell the public to take advantage of ARM loans while the rates were low. Encouraged by Bush saying he was on a mission to put 5 million low income hispanics in new houses. Yep, that's a recepie for disaster.
Quote:
Bush's mission to get 5.5 million low income minorities mortgages when they would not otherwise qualify for them.
Mobilizing the Private Sector: America's Homeownership Challenge
Establish a national goal of at least 5.5 million new minority homeowners before the end of the decade.
Challenge the private sector real estate and mortgage finance industries to dramatically increase their efforts to reduce the barriers to homeownership faced by minority families and to work with the nonprofit sector in a concerted effort to achieve this goal through national and local partnerships.
Convene a White House Conference on Increasing Minority Homeownership, to highlight the homeownership barriers faced by minorities and develop proposed solutions.
A substantial increase of at least $440 billion in the financial commitment made by the government-sponsored enterprises involved in the secondary mortgage market, specifically targeted toward the minority market;
Twenty-five different local initiatives to be undertaken across the nation, geared toward eliminating the specific homeownership barriers faced by minority families in those communities;
A commitment to raise $750 million in below-market-rate investments by 2007, which will work in collaboration with local homeownership initiatives and be targeted to heavily minority program areas;
Pursuing strategic partnerships in 20 top housing markets between homebuilders, lenders, local officials, and community leaders to develop approaches that address the local challenges to building homes for minority families living in urban centers;
Establishing of faith-based housing partnerships between the participants and at least 100 churches, mosques, synagogues, and other faith-based institutions;
Aggressively developing new mortgage products so that conventional market alternatives are available to combat the predatory loan products that are disproportionately targeted to minorities;
Creating new mortgage products to meet the unique needs of recent immigrants;
Dramatically expanding financial education efforts for minorities, providing financial counseling to at least 380,000 minority families, and taking measures at the local level to reduce predatory lending; and
Establishing multilingual, consumer-oriented internet Web sites designed to help minorities overcome barriers to homeownership, including creation of a central data bank of affordable housing programs made available to real estate agents when working with clients.
He only left out the part where the Federal government stong armed the banks into these low interest silly loans in the first place. The banks just went where the money was...or supposed to be. The homeowners should have read the fine print but they were far too interested in looking rich and "living the life" as I heard so many, many times in our former development.
I am pretty sure that the one you aimed that link at won't be reading it since nobody at hard left headquarters would allow their workers to read things like that. Nice Deb just isn't the kind of person who they would want their followers to read from. That is because they may start questioning the leaders' words about "no such thing as 17 warnings from Bush about Fannie and Freddie in that one year (2008). They wouldn't want their useful idiots to know that the House of Representatives listened to Barney Frank say that there was nothing wrong at Fannie Mae although they admitted to a $1.2 billion error in one year.
Outstanding reading but I can guarantee you that I know at least 2 libs who are making noises here today who read very little, if any, of it.
Please explain how any of the items in the link would have prevented the housing bubble and subsequent collapse. Any warnings in 2008 would have been far to late. The accounting problems at Fannie Mae did not cause the housing bubble or its subsequent collapse.
that is strange it was the congress that pressured banks to give easy loans to poor people so that they would not violate their civil rights, later when they defaulted we bailed out the banks. now the president scolds them for doing too easy loans, the loans he told them to give.
Federal Government does not have a say so in this hey! i remember when Bush talked about the wrong doings of Fannie and Freddie, but no one listened, went right out the window, andd he told congress.
And Obama has nothing to do with this hey. Tell that to sweeney! He also wanted the banks to make these friggin loans.
And sorry but i was in real estate for 15 years, people have some of the responsibility themseves, when wanting home ownership. They do bear a lot of responsibility, but time after time, homebuyers, eyes were bigger then their bank accounts, and they did not care. They had to have the biggest, and the best, and eveything else they could. Banks bear so much responsibility, but when is it not up to the homebuyer, to also bear some of this responsibility. Both party's the banks and hombuyers themselves bear the burden of this mess.
Then you must also be familiar with the illegal practices of companies like Ameriquest.
Ameriquest, the nation's largest subprime lender, faces numerous lawsuits filed by customers who said the subprime lender charged them excessive fees or changed the agreed-upon terms on refinancing loans when they arrived to sign the final documents.
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