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The Community Reinvestment Act was the beginning. By forcing banks to loan to high risk folks then it went down hill from there.
The CRA has been around for 30 years and it did not "force" anyone to make bad loans, it was to address redlining. Banks and mortgage companies made bad loans on their own, and actually ignored government regulations in search for endless profits. Blaming 2008 on the CRA is laughable.
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Instead, she took her employer to court -- and won. In August 2011, five
months after the meeting with Polkinghorne, Hunt sued Citigroup in Manhattan
federal court, accusing its home-loan division of systematically violating U.S.
mortgage regulations.
The U.S. Justice Department decided to join her suit in January. Citigroup
didn’t dispute any of Hunt’s facts; it didn’t mount a defense in public or in
court. On Feb. 15, 2012, the bank agreed to pay $158.3 million to the U.S.
government to settle the case.
The CRA has been around for 30 years and it did not "force" anyone to make bad loans, it was to address redlining. Banks and mortgage companies made bad loans on their own, and actually ignored government regulations in search for endless profits.
Wrong. I already posted the Fannie Mae document stating that their and Freddie Mac's affordable lending programs sought to buy loans specifically made to those with no credit from Countrywide and other loan originators.
No established credit = NO FICO score = subprime, high-risk, and as it has turned out... toxic loans.
The CRA has been around for 30 years and it did not "force" anyone to make bad loans, it was to address redlining. Banks and mortgage companies made bad loans on their own, and actually ignored government regulations in search for endless profits. Blaming 2008 on the CRA is laughable.
Obama was a pioneering contributor to the subprime real estate bubble, and roughly half of the 186 African-American clients in his landmark 1995 mortgage discrimination lawsuit against Citibank have since gone bankrupt or received foreclosure notices. As few as 19 of those 186 clients still own homes with clean credit ratings, following a decade in which Obama and other progressives pushed banks to provide mortgages to poor African Americans.
Obama jumped at the opportunity to represent Buycks-Roberson in this case. This case, along with several others, caused some changes to be made to the mortgage industry. In 1994, then President Bill Clinton was responsible for overhauling the mortgage industry’s lending policies. One of those provisions was to outlaw redlining practices. Clinton also forced the mortgage companies to lower their lending requirements so more people could secure a mortgage and supposedly own their own homes.
In 2001 she filed bankruptcy and in 2008 she received a foreclosure notice on the home she bought after Obama had won her case.
Wrong. I already posted the Fannie Mae document stating that their and Freddie Mac's affordable lending programs sought to buy loans specifically made to those with no credit from Countrywide and other loan originators.
No established credit = NO FICO score = subprime, high-risk, and as it has turned out... toxic loans.
Beating a dead horse at this point but no credit history does not mean no documentation, nor did it give Countrywide arte blanche to write bad loans. Again, F&F was a small part of the Mortgage problem.
Blatantly wrong. The government threatened lending institutions with legal action if they didn't meet government quotas for minority loans.
They held banks responsible for not lending to qualified buyers in poor neighborhoods, redlining. There was no connection between the CRA and the subprime mortgage problem, that was mostly due to predatory practices by banks. The CRA was passed in 1977.
They held banks responsible for not lending to qualified buyers in poor neighborhoods, redlining. There was no connection between the CRA and the subprime mortgage problem, that was mostly due to predatory practices by banks. The CRA was passed in 1977.
Trying to hide stupidity of the people by using the word predatory cracks me up.
So you're admitting people lacked financial understanding to know they couldn't afford that mortgage. It's up to you to know if you can handle the mortgage payments. If you don't there is always someone waiting to take advantage of you. Geez
A lot of people not just one political party or a group of investors but everyone who supported the change. In 2002 President George W. Bush called on Congress to create a $200 million American Dream Down-Payment Fund. It was almost a kind of wealth redistribution plan supported by both parties. Bottom line is it didn't work and was the major cause of the real estate collapse in 2008. I feel that in the media there is a lot of information that isn't reported and the republican party is the one that is quick to blame on many matters like this. Who do you think is to blame?
I think banks and lenders are to blame. If you have to finance your monthly mortgage payments through loans, you are living way beyond your means. On the other hand it was effing corrupt by the banks to lend to non qualified lenders because they knew they didn't pay the consequences, they packaged those mortgages in asset backed securities and sold them to financial institutions across the globe.
Last but not least the reason for all of this to happen was the government. They passed legislation which pretty much forced banks to lend to non-qualified lenders. Look up the Community Reinvestment Act. Both party's are to blame. But it started in the 70's under the Carter administration. The Changes made by Clinton and Bush only exacerbated the problem.
Beating a dead horse at this point but no credit history does not mean no documentation, nor did it give Countrywide arte blanche to write bad loans.
Indeed, it did. Subprime loans are those that are made to borrowers who do not have at least a minimum FICO score. All those loans F&F wanted to buy from Countrywide, etc., made to borrowers with no established credit and no FICO score were subprime loans.
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Again, F&F was a small part of the Mortgage problem.
Very wrong.
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"Fannie Mae and Freddie Mac, government-sponsored enterprises (GSEs) in the secondary mortgage market, are the two largest sources of housing finance in the United States."
As such, F&F establish the mortgage market in the US. And beginning with the Clinton-era revamp of HUD Affordable Lending mandates they began buying HUGE amounts of subprime loans, creating the market demand for them.
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