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Thread: President Bush's Home Ownership Challenge is to blame for the current economic mess

  1. #1
    Maneater JawZ's Avatar
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    President Bush's Home Ownership Challenge is to blame for the current economic mess

    http://www.whitehouse.gov/news/relea...0040809-9.html

    This is where he directed Fannie and Freddie to put up $440 Billion for folks with bad credit.

    [ link ]



    Any questions? Please look here first.


    And some of you are supporting McCain having to leave his campaign idle in order to deal with this issue.....LMFAO!!!!!

    ...formerly the omnipotent UOD

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    Moderator Roody's Avatar
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    ughhh

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    Moderator David's Avatar
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    Was it the fault of Bush that middle class folk were huckstered risk laden loans?

    Hell_Yes

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    Where ever there's a program to help somebody, there's someone just as willing to take advantage of that program to get something for nothing. Having worked with mostly sub-prime clients trying to buy homes, it often wasn't in their best interest to buy because of either a fixed, limited income or poor credit. MAN MANY sub-prime lmortgage brokers would convince the client to get the loan by tricky accounting...

    100% financing at 70/30 promising the seller 20% down then using the extra 10 to off debt, the purchase price was usually often 10% over asking to do it...

    In theory it works but not when numbers are crunched and in three years the loan adjusts giving them a payment over a grand higher then they started with. This is where many of my loans fell flat. Poor income or poor credit, my usual advice to these clients was to keep renting knowing they could afford 250 extra each month and settling with debt collectors to save their credit and within a few years buy. This was done on the recommendation of the Loan Manager
    Quote Originally Posted by Three Rivers Designs
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    Second Most EVIL YARDofSTUF's Avatar
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    Someone call JC, STAT.

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    Moderator David's Avatar
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    CiscoKid,

    True enough. Moreover, it was real estate agents selling folks homes they could not afford with loans brokered by mortgage people who manipulated the numbers. Add to the mix inspectors who overvalued the homes and banks who packaged the loans as securities and passing them off to the Wall street types.

    Hell_Yes

    Luck is where preparation meets opportunity - Seneca

    "Anti-intellectualism has been a constant thread winding its way through our political and cultural life, nurtured by the false notion that democracy means that 'my ignorance is just as good as your knowledge.'" - Isaac Asimov

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    NYC Newbie Slayer Prey521's Avatar
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    Is it really ENTIRELY his fault? Bubba may have something to say about that.

    September 30, 1999

    Fannie Mae Eases Credit To Aid Mortgage Lending
    By STEVEN A. HOLMES

    In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

    The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.

    Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.

    In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans.

    ''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.''

    Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market.

    In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.

    ''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''

    Under Fannie Mae's pilot program, consumers who qualify can secure a mortgage with an interest rate one percentage point above that of a conventional, 30-year fixed rate mortgage of less than $240,000 -- a rate that currently averages about 7.76 per cent. If the borrower makes his or her monthly payments on time for two years, the one percentage point premium is dropped.

    Fannie Mae, the nation's biggest underwriter of home mortgages, does not lend money directly to consumers. Instead, it purchases loans that banks make on what is called the secondary market. By expanding the type of loans that it will buy, Fannie Mae is hoping to spur banks to make more loans to people with less-than-stellar credit ratings.
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    Quote Originally Posted by David View Post
    CiscoKid,

    True enough. Moreover, it was real estate agents selling folks homes they could not afford with loans brokered by mortgage people who manipulated the numbers. Add to the mix inspectors who overvalued the homes and banks who packaged the loans as securities and passing them off to the Wall street types.
    Personally, I think those loan agents and Realtors should be brought up on charges
    Quote Originally Posted by Three Rivers Designs
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    Not to mention the deregulation in the 80s.I would say even the politicians havd had a hand in this since awhile back.

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    Assistant Admin Ken's Avatar
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    Quote Originally Posted by frostybear View Post
    Not to mention the deregulation in the 80s.I would say even the politicians havd had a hand in this since awhile back.
    Thats what many can't understand... If often takes "years" to realize the true outcome...

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    Maneater JawZ's Avatar
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    Quote Originally Posted by Ken View Post
    Thats what many can't understand... If often takes "years" to realize the true outcome...

    Then man up and tell that to JC.

    ...formerly the omnipotent UOD

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    Quote Originally Posted by Ken View Post
    Thats what many can't understand... If often takes "years" to realize the true outcome...
    I know, really sad that people will not take a few min to think about stuff like this among other legislation because they feel it is the only thing that will save them that very second...short-sighted..sigh

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    Assistant Admin Ken's Avatar
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    Quote Originally Posted by UOD View Post
    Then man up and tell that to JC.
    Yeah, let me do that,...for all of those in the know...

    http://www.google.com/search?source=...=Google+Search


    Before you blame Bush, start reading through those links... Be greatful that the internet wasn't as prominent in the years before 2000...


    This is from Nov 1994...
    In an effort to reinvigorate African-American homeowners' hopes, the Federal National Mortgage Association (Fannie Mae) announced that it is providing $1 trillion in financing to assist approximately 10 million low- to moderate-income families purchasing homes by the year 2000. ...blah blah... Last year, pressure from President Clinton's administration caused Fannie Mae to initiate mortgage loans to two previously neglected groups: inner-city residents and low- to moderate-income home buyers.

    I'm not going to waste any more time on this though. Both sides are corrupt. The playing field merely needs to be leveled out on occassion...

  14. #14
    Maneater JawZ's Avatar
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    Quote Originally Posted by Ken View Post
    Yeah, let me do that,...for all of those in the know...

    http://www.google.com/search?source=...=Google+Search


    Before you blame Bush, start reading through those links... Be greatful that the internet wasn't as prominent in the years before 2000...


    This is from Nov 1994...



    I'm not going to waste any more time on this though. Both sides are corrupt. The playing field merely needs to be leveled out on occassion...

    LOL...oh so now all of a sudden both sides are corrupt...which includes your own.

    So who you voting for again?


    Do you provide the same lovely advice to JC? Do you tell him that before he starts blaming the Dems for all evildoings that he should search the net for supporting links?

    ...formerly the omnipotent UOD

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    Dr Tweak mnosteele52's Avatar
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    Quote Originally Posted by CiscoKid View Post
    Where ever there's a program to help somebody, there's someone just as willing to take advantage of that program to get something for nothing. Having worked with mostly sub-prime clients trying to buy homes, it often wasn't in their best interest to buy because of either a fixed, limited income or poor credit. MAN MANY sub-prime lmortgage brokers would convince the client to get the loan by tricky accounting...

    100% financing at 70/30 promising the seller 20% down then using the extra 10 to off debt, the purchase price was usually often 10% over asking to do it...

    In theory it works but not when numbers are crunched and in three years the loan adjusts giving them a payment over a grand higher then they started with. This is where many of my loans fell flat. Poor income or poor credit, my usual advice to these clients was to keep renting knowing they could afford 250 extra each month and settling with debt collectors to save their credit and within a few years buy. This was done on the recommendation of the Loan Manager
    Well said.

    In the area I live in it was ridiculous, so many people went out and got interest only loans on houses they knew they could not afford, people earning $50-70K buying $500,000 plus houses. Everyone with any common sense saw this coming years ago. Buyers were stupid, mortgage brokers were qualifying people they shouldn't have been and real estate agents were making a killing pushing over expensive houses on people. They should ALL be locked up, now us, the average Joe hardworking taxpayer is footing the bill.

    I'm so sick of hearing about all this sh*t i can't stand it. Stop trying to add politics into all this BS, it has nothing to do with it..... it's called GREED and STUPIDITY!


  16. #16
    Assistant Admin Ken's Avatar
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    Quote Originally Posted by UOD View Post
    LOL...oh so now all of a sudden both sides are corrupt...which includes your own.

    So who you voting for again?


    Do you provide the same lovely advice to JC? Do you tell him that before he starts blaming the Dems for all evildoings that he should search the net for supporting links?
    JC has nothing to do with this... You were the one that posted it was all Bush's fault... The truth is, the foundation was way before Bush...

    As I said, I am merely leveling the playing field and making a point. Point being, it often takes "years" to realize the true effects and results. Presidents have always inherited the problems and often the blame from decisions made before they were involved. This is a classic case. People are blaming Bush, when Clinton laid the foundation for this. And, of course, you can blame the banks, however, I tend to blame the dumb-asses that sign contracts that they are not capable of understanding. Classic American mentality, there must be someone else to blame it on as we can't seem to accept responsibility for ourselves and our actions...

    Once again, if you really want to do something positive, why don't you crusade to teach the poor the importance of education. What they take for granted and many die daily trying to get into this country to have an opportunity to have... School is not merely a free baby-sitter...
    Educated = money, uneducated = poor... That is pretty much reality... It is yours from here, I have other things to do.

  17. #17
    Quote Originally Posted by Ken View Post
    JC has nothing to do with this... You were the one that posted it was all Bush's fault... The truth is, the foundation was way before Bush...

    As I said, I am merely leveling the playing field and making a point. Point being, it often takes "years" to realize the true effects and results. Presidents have always inherited the problems and often the blame from decisions made before they were involved. This is a classic case. People are blaming Bush, when Clinton laid the foundation for this. And, of course, you can blame the banks, however, I tend to blame the dumb-asses that sign contracts that they are not capable of understanding. Classic American mentality, there must be someone else to blame it on as we can't seem to accept responsibility for ourselves and our actions...

    Once again, if you really want to do something positive, why don't you crusade to teach the poor the importance of education. What they take for granted and many die daily trying to get into this country to have an opportunity to have... School is not merely a free baby-sitter...
    Educated = money, uneducated = poor... That is pretty much reality... It is yours from here, I have other things to do.
    Who controlled Congress in '94? Um, yeah. Nice try, though.

  18. #18
    Assistant Admin Ken's Avatar
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    Quote Originally Posted by Izzo View Post
    Who controlled Congress in '94? Um, yeah. Nice try, though.
    You know, if you actually did what you blamed others for not doing, such as provide valid input instead of merely trying to make yourself feel better than someone else, you may actually feel better about yourself. Oh yeah, how about reading those links...

  19. #19
    Quote Originally Posted by Ken View Post
    You know, if you actually did what you blamed others for not doing, such as provide valid input instead of merely trying to make yourself feel better than someone else, you may actually feel better about yourself. Oh yeah, how about reading those links...
    If anyone needs to do any reading it's you, bud. Are you denying the republicans controlled congress in '94? You do know how the whole bill becomes law thingy works, right?

  20. #20
    Assistant Admin Ken's Avatar
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    Quote Originally Posted by Izzo View Post
    Who controlled Congress in '94? Um, yeah. Nice try, though.
    http://www.senate.gov/pagelayout/his...s/partydiv.htm

    Oh, ...here you go, brains...

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