Fannie Mae and Freddie Mac were the chief culprits in the housing crisis because they encouraged people who could not afford payments to borrow money, according to a congressional report released Tuesday.
But, they still don't admit any responsibility (Barney Frank is AGAIN encouraging Fannie Mae and Freddie Mac to lower lending standards). This hindsite doesn't even approach 20/20.
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Fannie Mae (FNM) and Freddie Mac (FRE), two wards of the government, have announced they will lower lending standards to encourage refinancing for mortgage holders who have gone underwater due to falling prices. The new push comes as the Washington Business Journal reports that Freddie received an additional $6.1 billion from the Treasury Department to cover additional losses in the last quarter.
The adjustment is part of the Home Affordable Refinance Program, introduced by the Obama Administration to help homeowners avoid foreclosures. Some 1.5 million to 2 million homeowners have signed up, according to initial estimates, but a Mortgage Bankers Association release said that as of June 22, only 13,000 loans had been completed using HARP.
http://www.dailyfinance.com/2009/07/02/fannie-freddie-lower-mortgage-lending-standards-further/
Sean, Sen. Barney Frank's boyfriend was the head of one of Freddie Mac when the housing problem started.
Well this will be one of the somewhat rare occasions where I agree with Sean.
This shit has got to stop. We sure don't need more sub prime mortgages. Public or private.
The elephant in the room no one seems to want to talk about is the impending wave of prime mortgage defaults. Potentially as many as one in fifteen.
This is to say nothing of the upwards of three trillion in bad commercial property moldering on the books.
In this present crisis, government is not the solution to our problem. Government IS the problem.
- Ronald Reagan
Still true
Yeah like Regan never ran a deficit.
Like he wasn't part of it either which I find strangely silent here about "prior" administrations.How did we get where we are?The last several days,last several months or last several years?
How can a person write hindsight and then write hindsite? Same person and brain...
Much preoccupation with "hind's" around here.
That's true Doug.LOL.
Joanna - you might notice that I did identify and correct my spelling mistake "all on my own". Wow, no government hand holding required.
And, you might notice that this particular thread is about the root cause of the mortgage meltdown. Certainly Fannie Mae and Freddie Mac have been around for multiple administrations. If you read the article I linked, you would see that Clinton administration’s National Homeownership Strategy is really at the root of this. So, no need for any more strange silence on prior administrations.
So you say...
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