who pushed Freddie Mac to expand home ownership

It was the GOP and Dems together. However, for the 87th time, the vast majority of sub-prime loans and the vast majority of loans on since-foreclosed homes came from PRIVATE lenders i.e. Wells Fargo, Wachovia, IndyMac, Countrywide, etc. Fannie and Freddie were late to the sub-prime game.

So its a complete GOP fabrication to say Barney Frank or Fannie/Freddie "caused" the crises. Especially since we say countries that ONLY had private lenders like Ireland and Spain ALSO had housing bubbles.

So Newt is a hypocrite and a liar, but he did not "cause" any such thing.

well said, jason

---Fannie and Freddie were late to the sub-prime game.

NOT SO.. they bot, and insured many..

It was mostl the Democrats. The definition of subprime and alt-a is so vague, adn with automated under-writing a slight tweak in the GSE model. It's also a reason why the GSE's invsested in subprime bonds.
That said, that the GSE's did jump in was as much an issue of greed as succumbing to political pressure.

"Brooks2
Fannie and Freddie were late to the sub-prime game.

NOT SO.. they bot, and insured many.."

Many, but not most. Not even close to most. Over 80% were never touched by Fannie and Freddie, and they were LOSING market share in subrime in the peak shit loan years of 2005 and 2006.

"The definition of subprime and alt-a is so vague, adn with automated under-writing a slight tweak in the GSE model."

Irrelvant. We know which loans were or are ACTUALLY in default and which homes were ACTULLY forclosed upon, and private subprime and alt-a loans AS DEFINIED BY THE LENDERS AND RATING AGENCIES THEMSELVES vastly outnumber Freddie and Fannie loans. Its not "vague." The numbers are concrete.

Of course the question is who pushed Fredddie and Fannie to expand home ownership, so the talk about private issuance is a red herring.

So fanie and freddie are thriving institutions with astrong earnings and stock price? I suppose they are not losing billions a year because they stayed away from sub-prime/ alt-a what every you want to call the SH$t they bot or insured.

Even if the underwriting standards of the GSE'S wasnt' as bad as what existed elsewhere , they were so highy leveraged/thinly capitalized that even a slightly lower origination standard coupled with increased defaults would be disastrous.

Sounds like corruption in disguise to me! You push a bill to congress in favor of homeownership, and to thank you we'll hire your group as consultants!

I don't buy the argument that Fannie wasn't lowering underwriting standards. Over the years they had more 80/20 first lien positions than those with a true 20% down payment and a higher mix of lower ltv scores. It was only toward the last few years that they even adopted risk based pricing. The whole issue of whether Fannie caused or contributed to the housing mess is so politicized that nobody can/will answer truthfully.

"So fanie and freddie are thriving institutions with astrong earnings and stock price? I suppose they are not losing billions a year because they stayed away from sub-prime/ alt-a what every you want to call the SH$t they bot or insured."

What he said
"Even if the underwriting standards of the GSE'S wasnt' as bad as what existed elsewhere , they were so highy leveraged/thinly capitalized that even a slightly lower origination standard coupled with increased defaults would be disastrous"

" In fact, institutions covered by CRA made only about 6 percent of sub-prime loans"

Yea , CRA was small time, but quoted in the initial Wall Street research when justifying traditional subprime.

Oh Riversider, I feel your pain. At this point, it takes a certain kind of person to be fiscally conservative AND a loyal Republican. The GOP is responsible for 80% of our current crisis (repeal of Glass-Steagall, Bush tax cuts, Iraq and Afghan war outsourced to well-connected crooks, unfunded medicare drug entitlement, corrupted and well-paid opposition to regulations); the Democrats may have blinked, but making the rich richer wasn't their fight.
It must be what it feels like to be a Mets fan.

That is true. But its still remains true that private firms did the vast majority of subprime, alt-a, and any and all subsequent defaulted/foreclosed upon loans.

Maly, you forgot Sweat shops in Saipan to finance GOP campains!

Newt's a hypocrite. Good Luck.

spoken like a true Democrat. I suspect there would never be a Republican you would like.

Ron Paul. btw I am not a democrat. republicans can't get a real candidate and the past leadership ie Bush blew up the economy as well as the party.

----it was the GOP and Dems together.

This may be true, but it was recklessly accelerated under Bush's leadership.

http://www.youtube.com/watch?v=GkAtUq0OJ68

listen to what he says about fnmae and freddie mac

a first time home buyer can have just a nice a house as anybody else??? who prompted this to destructive levels? Whose leadership?

please be realistic in your arguments.

This speech was given in 2002'! When did the housing bubble Start? Under whose leadership?

Who was the president in 2002?

I am not a democrat! I am realist!!! it we the F#$king republicans that blew up the economy!!!!!

Loose mortgge underwriting standards are not a problem until home prices go up. To say it was all a Bush phenomenon ignores reality and manias occur. Each year Wall Street had to get a little more aggressive in their underwriting of loans as the pool of credit worthy borrowers constantly shrunk and as competition in the market place heated up. It was a house of cards that took years to create.

And there was so much money being made and no real problems right up till the end, that nobody would listen to the Cassandra's preaching gloom.

Anyone with true under-writing experience knows that a home with no down payment is more prone to default and a borrower with no capacity to pay is an even bigger disaster waiting to happen. It was one exception after another built over the years.

Ironically it could all be solved if every lender was required to follow a version of the "know your customer rule" common in the securities industry.

The housing bubble started because people felt that buying into housing was safe and tangible, after they saw the loss of money in the vapor of first generation internet stocks.

Certainly Bush pushed the ownership society just as he promoted "faith based initiatives", and the country was willing to accept all of that. And then there were others who similarly wanted to expand home ownership by reducing the requirements for purchasing and financing.

----Each year Wall Street had to get a little more aggressive in their underwriting of loans as the pool of credit worthy borrowers constantly shrunk and as competition in the market place heated up. It was a house of cards that took years to create.

correct.. who prompted? who was leading the nation. Wall Street did not say, "a first time home buyer can have just a nice a house as anybody else". They just made it happen under the current Leadership. If this was not mandated by the President, it would not have happened.

Subprime securitization existed in the 90s as well as CDOs'..

it did not get out of hand until it was prompted and legitimized by the White House. YOu have to understand that. come on

correct.. who prompted? who was leading the nation. Wall Street did not say, "a first time home buyer can have just a nice a house as anybody else". They just made it happen under the current Leadership. If this was not mandated by the President, it would not have happened.

Deregulation was something that begain under Carter and gathered momentum. Carter started with the transportation industry.
Then you have Clinton who took down barriers between investment banking and commercial banks and deregulated derivatives.
The key thing is that enforcement and implementation was largely done via Treasury(back to Bill Clinton).

We do owe special thanks to Alan Greenspan who is a republican.

Chuck the Schumedia whore
Barney the frankfooter
Nancy the princess
THAT'S WHO!

>Chuck the Schumedia whore

Do you prefer him or Kirsten Gellybread?

Riversider you state "Then you have Clinton who took down barriers between investment banking and commercial banks and deregulated derivatives. "

Who actually wrote the Act that took down the barriers? Please be truthful in your answer.

The Famous Barney Frank Statement – “Fannie & Freddie are just fine”.

Pretending this was just the Republicans is moronic.

*somewhereelse

As I said it was both parties-- but...
it was the GOP and Dems together.

This may be true, but it was recklessly accelerated under Bush's leadership.

http://www.youtube.com/watch?v=GkAtUq0OJ68

listen to what he says about fnmae and freddie mac

The Famous John McCain Statement "the fundamentals of the American economy are strong....."

vs this wonderful market calming quotation from Harry Reid in October 2008:

"one of the individuals in the caucus today talked about a major insurance company -- a major insurance company -- one with a name that everyone knows that's on the verge of going bankrupt. "

petr the irrelevant is stomping around again in his big floppy shoes and exploding necktie still asking posters the equivlant of "pull my finger". class act.

>>Riversider you state "Then you have Clinton who took down barriers between investment banking and commercial banks and deregulated derivatives. "

>Who actually wrote the Act that took down the barriers? Please be truthful in your answer.

Who wrote it? Who cares who wrote it? We should look at who voted for it. A bill doesn't become a law because it is written:

Wikipedia:
The bills were passed by a Republican majority, basically following party lines by a 54–44 vote in the Senate[15] and by a bi-partisan 343–86 vote in the House of Representatives.[16] After passing both the Senate and House the bill was moved to a conference committee to work out the differences between the Senate and House versions. The final bill resolving the differences was passed in the Senate 90–8 (one not voting) and in the House: 362–57 (15 not voting). The legislation was signed into law by President Bill Clinton on November 12, 1999.

As far as the financial industry is concerned there's just not that much difference between Clinton, Bush & Obama.
Clinton was just the trend setter. And then you have the banks making more money under Obama than Bush and less bank fraud being prosecuted under Obama than Bush. After the worst finanical disaster how can Obama not be able to find fraud? If anything Obama is worse on those last two points alone. At least George Bush came up with Sarbanes Oxley and mark to market accounting which Obama admin did away with.

Usertofferson isn't for Sarbanes Oxley. That makes it more difficult for the companies he spoke about yesterday to go public.

lets at least call a spade a spade, UU = Petrfitz. I like eUnuch myself as a more appropriate moniker but petrfitz is probably just as bad.

"shoot the puck, barry!"

hello, truth. are you joining the OCCUPY STREETEASY movement?

There is an occupy street easy movement. it's called Stuy Town.

This is why we all have to get behind the Godfather, Herman Cain.
If you examine his ideas or even his foibles you will see he's a natural born leader and that's what this country needs.
In an interview recently he was asked about the women who accuse him of sexual misconduct.
He said, "If I see some titties that I like, I got to give'em a squeeze. I'm a biznezzman and I got no time for small talk." We could all learn a lot from Mr. Cain's time management skills.
That's Clintonian leadership if I've ever seen it!

that was funny

stuy town, ar reference?

Hey whatever happened to aboutready? Her dimming out was a real loss to us all given the joy she used to bring. I mean, there was a hearty lady who could laugh about anything, even something like her toilet seat or when she borrowed a toilet plunger on a Christmas Eve. That's what we need these days. I'm hoping she comes back.

be that as it may, she was the best "comper" on these boards.

Best comper for sure. Chased off the board by plungerburg. Big loss.

Comps are SO difficult.

Also, who chased aboutready from Brick Underground?

And what made her grey?