SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : American Presidential Politics and foreign affairs
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: TimF who wrote (29708)10/2/2008 12:58:08 PM
From: DuckTapeSunroof  Read Replies (1) of 71588
 
Re: "Government-sponsored enterprises (GSEs). Fannie Mae, et al, bears a large share of the responsibility."

I don't think so.

True --- they operated their business with FAR TOO HIGH LEVERAGE (50 and 70 to 1 lending-to-assets ratios!), and this brought about the collapse of their own companies, no doubt about that.

But, what these business did was buy mortgage loans from OTHER businesses (this is what they were tasked to do).

They did not *originate* mortage loans to individuals.

ALL OF THE MORTGAGE LOANS THAT FANNIE AND FREDDIE BOUGHT were originated by private businesses, other mortgage lenders... and it is THEY who extended loans to unqualified borrowers --- not the GSEs.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News