Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : GOPwinger Lies/Distortions/Omissions/Perversions of Truth -- Ignore unavailable to you. Want to Upgrade?

To: Steve Dietrich who wrote (150833)	1/2/2009 3:05:32 PM
From: Bill	1 Recommendation Read Replies (1) \| Respond to of 173976

Banks wanted to loan to anybody and everybody. That's false. Banks didn't want to loan to everybody. They drew a red line on a map where the poor risks were. Liberal pols stepped in and passed anti redlining laws.

To: Steve Dietrich who wrote (150833)	1/2/2009 5:21:23 PM
From: Brumar89	Read Replies (1) \| Respond to of 173976

Why did the government have to bend lenders arms to get them to make risky loans? In 1997 President Clinton's HUD secretary, a man named Andrew Cuomo, claimed Fannie Mae had exhibited "racial discrimination" and proposed that 50 percent of the GSEs' (Fannie and Freddie) loan portfolio be made up of loans to low- and moderate-income borrowers by 2001. Wayne Barrett at the Village Voice: [Clinton appointee] Andrew Cuomo... made a series of decisions between 1997 and 2001 that gave birth to the country's current crisis. He took actions that... helped plunge Fannie and Freddie into the subprime markets without putting in place the means to monitor their increasingly risky investments. He turned the Federal Housing Administration...into a sweetheart lender with sky-high loan ceilings and no money down, and he legalized what a federal judge has branded "kickbacks" to brokers that have fueled the sale of overpriced and unsupportable loans. Three to four million families are now facing foreclosure, and Cuomo is one of the reasons why. At the time, Democrat Cuomo said "GSE presence in the subprime market could be of significant benefit to lower-income families, minorities, and families living in underserved areas..." ...as Paul Krugman noted in the Times recently, "homeownership isn't for everyone," adding that as many as 10 million of the new buyers are stuck now with negative home equity... So many others have gone through foreclosure that there's been a net loss in home ownership since 1998... .... directorblue.blogspot.com Rising real estate prices and the subsequent fall did play a role in the bursting of the mortgage bubble. As high risk borrowers weren't able to meet their mortgage payments, they couldn't re-finance as they were "under water." But to deny the federal role in pushing lenders to make more and more loans to risky lenders is just denying reality.