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I think we all agree that both parties had a hand in the Wall Street bailout. I think we all acknowledge the fact that the housing and mortgage crisis was because of the toxic legislation written by Phil Gramm.
sorry but former demcorat turned neo con phil gramm's 1999 bill was not the problem...it certainly added to it but.....
Higher Loan-to-Value Ratio; Fannie Mae Eases Refinancing Rules
By Mervyn Rothstein
Published: November 28, 1993
The Federal National Mortgage Association, the country's largest source of home mortgage funds, has revised its policy to make it easier for some homeowners to refinance their mortgages and take advantage of current low interest rates.
The change expands Fannie Mae's mortgage refinancing policy to include home loans with as high as a 95 percent loan-to-value ratio. Previously, refinancing required no more than a 90 percent loan-to-value ratio.
....
.NYT 1993....
Fannie Mae Seeks to Ease Home Buying
By KEITH BRADSHER,
Published: March 10, 1994
WASHINGTON, March 9— The organization that stands behind many of the nation's mortgages is taking broad steps to make home ownership easier for lower-income Americans, particularly recent immigrants and minorities, people involved in the effort said today.
Under the new rules, banks would have more flexibility in lending to people who already owe a considerable amount of money or who cannot afford a down payment equal to 20 percent of the price of a home, the people said. Tuesday Announcement
.....
WASHINGTON, March 9 1994(By Bloomberg Business News) -- The Federal Reserve loosened lending regulations today on bank holding companies by requiring fewer appraisals of property involved in real estate loans.
The rules exempt banks from conducting a real estate appraisal for loans of $250,000 or less, raising the threshold from the previous $100,000.
Appraisals on some loans are required by the 1989 Financial Institutions Reform, Recovery, and Enforcement Act, though Congress gave Federal banking agencies the power to set a threshold to exempt smaller loans from the requirements.
Three banking regulators -- the Fed, the Office of Thrift Supervision and the Office of the Comptroller of the Currency -- proposed raising the threshold to $250,000 last June. The Fed is the only agency so far to approve the proposal.
In its proposal, the Fed staff said raising the threshold would increase the availability of credit and ease the regulatory burden on banks without endangering the safety and soundness of the banking industry.
......
.NYT 1994....
........
and here the NYT of 1997 even talkes about how CLINTON, and henry cisneros changed the rules...without congress....and again under his second hud chief andrew coumo
In 1992, the democrat controlled 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
1997 NYT
this garbage has been set up for YEARS and DECADES...to try to pin it to 1999 is just wrong
Funny you say that, we were talking about that the other night. I think the conclusion we came to is "it takes a crook to catch a crook." Only the people who have worked on the inside understand how to snake through regulations and who to pay off at the SEC and Congress.
It is will an enlightening process to see who is working for who......
stay tuned.
Agreed! It takes a crook to catch a crook, and then you have a team of crooks.
Funny you say that, we were talking about that the other night. I think the conclusion we came to is "it takes a crook to catch a crook." Only the people who have worked on the inside understand how to snake through regulations and who to pay off at the SEC and Congress.
It is will an enlightening process to see who is working for who......
stay tuned.
If Paulson taking Congress hostage under Bush is any indication to how these scum bags will behave, don't hold your breath on that change. Even Timmy boy has admitted it was a waist (do to public outcry), and he was the scum bag who was in charge of the NY fed when the bailout was given. Their allegiance is to Goldman Sachs and the banks.
How can Iceland, Ireland, Argentina, Yugoslavia, Russia, etc understand this but Americans fall for it hook, line and sinker?!?! Please tell me you know the history of Merill Lynch, Goldman Sachs, JP Morgan, Citi Group, etc in bringing these countries to their knees!!
Yes, absolutely! If they broke the law they should pay the price. But, if they played by the rules (as legislated by our elected leaders), then unfortunately there's been no crime committed.
Do I think they were unethical? Yes. But, so were people who bought houses and took out loans when they knew they couldn't really afford them. Those folks are being cast as victims. Why does one get vilified when the other gets glorified?
Just wondering.
I totally agree...............
I walked away from several potentail clients because they told me what they made and how much the mortgage company said they would qualify for on 100% financing. When I said to them "just because they say you can spend this much, does not mean you should spend that much" they got angry with me. I refused to work for them and have anything to do with their house hunting.
The thing is, I am a real estate professional and most of us saw this disaster coming, if a couple make less than 30K a year it makes no sense to take out a 200K loan. It is simple math, but too often people do not want to face the facts! They think that since the banks would loan the money they must be able to afford it.
Granted some people are not too good with numbers but when they are shown the numbers (like I showed them the numbers) they should at least think it over. Unfortunatly they didnt.
sorry but former demcorat turned neo con phil gramm's 1999 bill was not the problem...it certainly added to it but.....
Higher Loan-to-Value Ratio; Fannie Mae Eases Refinancing Rules
By Mervyn Rothstein
Published: November 28, 1993
The Federal National Mortgage Association, the country's largest source of home mortgage funds, has revised its policy to make it easier for some homeowners to refinance their mortgages and take advantage of current low interest rates.
The change expands Fannie Mae's mortgage refinancing policy to include home loans with as high as a 95 percent loan-to-value ratio. Previously, refinancing required no more than a 90 percent loan-to-value ratio.
....
.NYT 1993....
Fannie Mae Seeks to Ease Home Buying
By KEITH BRADSHER,
Published: March 10, 1994
WASHINGTON, March 9— The organization that stands behind many of the nation's mortgages is taking broad steps to make home ownership easier for lower-income Americans, particularly recent immigrants and minorities, people involved in the effort said today.
Under the new rules, banks would have more flexibility in lending to people who already owe a considerable amount of money or who cannot afford a down payment equal to 20 percent of the price of a home, the people said. Tuesday Announcement
.....
WASHINGTON, March 9 1994(By Bloomberg Business News) -- The Federal Reserve loosened lending regulations today on bank holding companies by requiring fewer appraisals of property involved in real estate loans.
The rules exempt banks from conducting a real estate appraisal for loans of $250,000 or less, raising the threshold from the previous $100,000.
Appraisals on some loans are required by the 1989 Financial Institutions Reform, Recovery, and Enforcement Act, though Congress gave Federal banking agencies the power to set a threshold to exempt smaller loans from the requirements.
Three banking regulators -- the Fed, the Office of Thrift Supervision and the Office of the Comptroller of the Currency -- proposed raising the threshold to $250,000 last June. The Fed is the only agency so far to approve the proposal.
In its proposal, the Fed staff said raising the threshold would increase the availability of credit and ease the regulatory burden on banks without endangering the safety and soundness of the banking industry.
......
.NYT 1994....
........
and here the NYT of 1997 even talkes about how CLINTON, and henry cisneros changed the rules...without congress....and again under his second hud chief andrew coumo
In 1992, the democrat controlled 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
1997 NYT
this garbage has been set up for YEARS and DECADES...to try to pin it to 1999 is just wrong
All true except the majority of the bad mortgages were not government backed loans. FHA tells Fannie and Freddie what to do. It was a series of events that led to this catastrophe in the housing market. The 100% finacing was a disaster waiting to happen.
I walked away from several potentail clients because they told me what they made and how much the mortgage company said they would qualify for on 100% financing. When I said to them "just because they say you can spend this much, does not mean you should spend that much" they got angry with me. I refused to work for them and have anything to do with their house hunting.
The thing is, I am a real estate professional and most of us saw this disaster coming, if a couple make less than 30K a year it makes no sense to take out a 200K loan. It is simple math, but too often people do not want to face the facts! They think that since the banks would loan the money they must be able to afford it.
Granted some people are not too good with numbers but when they are shown the numbers (like I showed them the numbers) they should at least think it over. Unfortunatly they didnt.
Wish I could say that most of your fellow realtors have your high ethical standards. Unfortunately, in my experience, you are one of the few. I've bought 7 houses in the last 30 years, every time utilizing the services of a realtor. All but 1 tried to sell me on houses that were 10 to 25% over the amount I gave them as my upper limit. And no, none of these purchases have been recently when some houses are selling well below asking price. So, yes, banks were greedy. And so were many realtors. As were buyers who knew they had no business buying above a certain price, but felt they "deserved" a particular house. And all of this greed was aided and abetted by the loosening of sensible lending practices by our government.
What really needs to happen is a comprehensive investigation. I want all parties that engaged in illegal activities held accountable. Problem is, a lot of this mess was done legally thanks to deregulation and lax lending principles that were promoted by our legislators. There is certainly enough blame to go around and neither party is absolved of it, and now the taxpayers get stuck holding the bag while watching our home values depreciate.
What really needs to happen is a comprehensive investigation. I want all parties that engaged in illegal activities held accountable. Problem is, a lot of this mess was done legally thanks to deregulation and lax lending principles that were promoted by our legislators. There is certainly enough blame to go around and neither party is absolved of it, and now the taxpayers get stuck holding the bag while watching our home values depreciate.
Absolutely. We can't LEGALLY punish entities (corporate or otherwise) who were following the laws. Being greedy isn't an offense punishable by law. But, there are those who feel we should now "LEGISLATIVELY" punish them for doing exactly what the law allowed.
You people just move from villain to villain don't you. Is there any corporation or private enterprise that 0bama and Co. do not despise?
Tell me, now that 0bama has signed his health care reform, are the villainous doctors still slicing off people's feet and cutting out healthy organs to pad their wallets, like 0bama said?
0bama and his type always need to create a villain in order to frighten people into going along with their policies and agenda. Arguing their case in a sensible way, using the truth will not work. So at the end of the day, 0bama and people like Pelosi and Durban will have the bankers slicing off limbs and ripping our organs to make a profit.
Seriously, let's rename the country Tromaville and then every company will be under the banner of Apocalypse, Inc.!
What really needs to happen is a comprehensive investigation. I want all parties that engaged in illegal activities held accountable. Problem is, a lot of this mess was done legally thanks to deregulation and lax lending principles that were promoted by our legislators. There is certainly enough blame to go around and neither party is absolved of it, and now the taxpayers get stuck holding the bag while watching our home values depreciate.
I agree.
Through campaign contributions and lobbyists, the banksters are able to write their own rules.
The only way to change this scenario is through public campaign finance reform.
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I agree
