Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
No, they weren't ordered to buy "Sub prime" loans.
If you think they were then you don't know what "Sub prime" means.
Does it mean no/bad credit history? Yes, it does. Those are EXACTLY the loans Fannie and Freddie contracted to buy from Countrywide and their other "best lenders" for their "Affordable Lending" programs. Read the year 2000 Fannie Mae doc I posted.
So if what you say is true, does that make what Fannie and Freddy did okay?
I have never proclaimed that the GSEs were without fault. However, the collapse was not caused by what the GSEs were doing. The private investment banks created the market for the very worst mortgages and combined the private investment banks share of the market was larger than the GSEs at the height of the bubble.
The GSEs didn't create a single CDO, CDO squared, CDO cubed or synthetic CDO. It was the use of the CDO that created the demand, by the investment banks, for the very worst subprime loans.
The GSE's did not buy 2.4 trillion worth of subprime loans, even when you redefine "subprime" to fit your own criteria.
They bought loans made to borrowers with no/bad credit histories (source: year 2000 Fannie Mae document I already posted), and loans based upon the GSEs "automated underwriting" systems which eliminated the document checking that manual underwriting does. I already posted the source stating the "automated underwriting" loans were approved 65% more than manually underwritten loans.
So Democrats are going to stop completely blaming Wall Street for the crash and acknowledge their own participation for once -- Clinton's HUD Secretary Cuomo ordering Fannie and Freddy to buy $2.4 TRILLION in sub-prime loans?
And the lying liberal media is going to -- finally -- tell the whole truth for once?
I'm not going to hold my breath waiting for that to happen!
The truth of what occurred has been available for years. There are several well written books on the subject, documentaries have been made and congressional investigations have occurred. The information is available, but it would appear very few care about the truth; they prefer instead their partisan political positions.
They bought loans made to borrowers with no/bad credit histories (source: year 2000 Fannie Mae document I already posted), and loans based upon the GSEs "automated underwriting" systems which eliminated the document checking that manual underwriting does. I already posted the source stating the "automated underwriting" loans were approved 65% more than manually underwritten loans.
Be that as it may, the GSE's did not buy 2.4 trillion worth of subprime loans.
Be that as it may, the GSE's did not buy 2.4 trillion worth of subprime loans.
Based on what? The fact that they DIDN'T identify their "Affordable Lending" program loans with no/compromised credit as the subprime loans they actually were? Please.
The fact that the loans were low-quality is what breached the contract, however, those loans were unintentionally low-quality (and therefore there was no fraud) BECAUSE:
...
Did you read the Appeals Court decision?
There was lots of evidence provided that Countrywide had knowingly violated their contract with the GSEs. Countrywide knew that they were not living up to the terms of the contract. The Appeals Court ruling however is based on whether or not the government had provided evidence of fraud or just breach of the contract. The Appeals Court ruled that the government had shown breach of contract.
There was lots of evidence provided that Countrywide had knowingly violated their contract with the GSEs.
Knowingly? How? The GSEs explicitly stated they wanted to buy loans made to those with no/bad credit histories, and wanted lenders to use the GSE-created "automated underwriting" systems that didn't check loan documentation.
I honestly applaud the Federal Appeals Court for recognizing the GSE scam when they saw it. 3-0 ruling.
Based on what? The fact that they DIDN'T identify their "Affordable Lending" program loans with no/compromised credit as the subprime loans they actually were? Please.
Based on the fact that, even if you consider their "affordable lending programs" to be subprime, they did not do anywhere near $2.4 trillion worth of them.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
