10 years after the Bush Mortgage Bubble, mortgage defaults finally back to normal

[Vern]

Wow, it took 10 years after the Bush Mortgage Bubble popped for defaults to finally get back to normal. that just shows how bad the Bush Mortgage Bubble was.

According to Capital Economics, the delinquency rate for US mortgages and foreclosure rate for homes are now back to their historical averages.

US delinquency and foreclosure rate down - Business Insider

 

[Fenton]

:roll:


:mrgreen:


1999
Fannie Mae Eases Credit To Aid Mortgage Lending
Fannie Mae Eases Credit To Aid Mortgage Lending - NYTimes.com

2000
Andrew Cuomo commits GSE's to 2.4 Trillion in Sub-Prime purchases..
HUD Archives: Cuomo Announces Action to Provide $2.4 Trillion in Mortgages for Affordable Housing for 28.1 Million Families

"Housing and Urban Development Secretary Andrew Cuomo today announced a policy to require the nation's two largest housing finance companies to buy $2.4 trillion in mortgages over the next 10 years to provide affordable housing for about 28.1 million low- and moderate-income families."

" Cuomo said the historic action by HUD raises the required percentage of mortgage loans for low- and moderate-income families that finance companies Fannie Mae and Freddie Mac must buy from the current 42 percent of their total purchases to a new high of 50 percent - a 19 percent increase - in the year 2001. The percentage will first increase to 48 percent in 2000.


2003
New Agency Proposed to Oversee Freddie Mac and Fannie Mae
New Agency Proposed to Oversee Freddie Mac and Fannie Mae - NYTimes.com

2006
Fannie Mae to Pay $400 Million in Fines
http://www.nytimes.com/2006/05/23/business/23cnd-fannie.html?_r=0

2008
Former Fannie Mae chief Franklin Raines and two other top executives have agreed to a $31.4 million settlement with the government
Franklin Raines to pay $24.7 million to settle Fannie Mae lawsuit | The Seattle Times

2008
GSE's insolvent holding over 5 Trillion in debt
https://en.wikipedia.org/wiki/Federal_takeover_of_Fannie_Mae_and_Freddie_Mac

------------------------------------------------------------------------------
Home-ownership rate in 1993 ? 63 %

Home-ownership rate in 2000 ? 68%

5% increase under Clinton

Home-ownership rate in 2006 ? 69%

1% increase under Bush

 

[Fenton]

Homeowner-ship rates drop to 63%, lowest since 1967
http://www.cnbc.com/2015/07/28/home-ownership-rates-drop-to-lowest-since-1967.html

 

[Cephus]

Who repealed Glass-Steagall again? Sure wasn't Bush.

 

[JC Callender]

Wow, it took 10 years after the Bush Mortgage Bubble popped for defaults to finally get back to normal. that just shows how bad the Bush Mortgage Bubble was.

According to Capital Economics, the delinquency rate for US mortgages and foreclosure rate for homes are now back to their historical averages.

US delinquency and foreclosure rate down - Business Insider

Fenton destroyed your thread with only the second post. :lamo But just out of curiousity, does it really sound like a Conservative idea to give loans to people who really don't qualify for the sake of equality? Sounds more like a Lib idea, doesn't it?

 

[Kobie]

Who repealed Glass-Steagall again? Sure wasn't Bush.

It was the Republican-led Congress, with a veto-proof majority.

Both parties were to blame.

 

[Kobie]

:roll:


:mrgreen:


1999
Fannie Mae Eases Credit To Aid Mortgage Lending
Fannie Mae Eases Credit To Aid Mortgage Lending - NYTimes.com

2000
Andrew Cuomo commits GSE's to 2.4 Trillion in Sub-Prime purchases..
HUD Archives: Cuomo Announces Action to Provide $2.4 Trillion in Mortgages for Affordable Housing for 28.1 Million Families

"Housing and Urban Development Secretary Andrew Cuomo today announced a policy to require the nation's two largest housing finance companies to buy $2.4 trillion in mortgages over the next 10 years to provide affordable housing for about 28.1 million low- and moderate-income families."

" Cuomo said the historic action by HUD raises the required percentage of mortgage loans for low- and moderate-income families that finance companies Fannie Mae and Freddie Mac must buy from the current 42 percent of their total purchases to a new high of 50 percent - a 19 percent increase - in the year 2001. The percentage will first increase to 48 percent in 2000.


2003
New Agency Proposed to Oversee Freddie Mac and Fannie Mae
New Agency Proposed to Oversee Freddie Mac and Fannie Mae - NYTimes.com

2006
Fannie Mae to Pay $400 Million in Fines
http://www.nytimes.com/2006/05/23/business/23cnd-fannie.html?_r=0

2008
Former Fannie Mae chief Franklin Raines and two other top executives have agreed to a $31.4 million settlement with the government
Franklin Raines to pay $24.7 million to settle Fannie Mae lawsuit | The Seattle Times

2008
GSE's insolvent holding over 5 Trillion in debt
https://en.wikipedia.org/wiki/Federal_takeover_of_Fannie_Mae_and_Freddie_Mac

------------------------------------------------------------------------------
Home-ownership rate in 1993 ? 63 %

Home-ownership rate in 2000 ? 68%

5% increase under Clinton

Home-ownership rate in 2006 ? 69%

1% increase under Bush

View attachment 67201412

Funny that you choose an arbitrary, mid-term endpoint for Bush. Right when the defaults were starting to pile up. Dishonest as always, Fenton.

 

[Kobie]

Fenton destroyed your thread with only the second post. :lamo

He really didn't but, mkay.

But just out of curiousity, does it really sound like a Conservative idea to give loans to people who really don't qualify for the sake of equality? Sounds more like a Lib idea, doesn't it?

It doesn't sound like anyone's idea, but you liars will make hay out of anything.

 

[Vern]

Who repealed Glass-Steagall again? Sure wasn't Bush.

You're not the first person to imply it had something to do with repealing GS and in a question format but you could be the first to explain the connection between GS and the cause of the Bush Mortgage Bubble. I'll let Bush tell you the cause and timeframe

From Bush’s President’s Working Group on Financial Markets October 2008

“The Presidents Working Group’s March policy statement acknowledged that turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007.” http://www.treasury.gov/resource-center/fin-mkts/Documents/q4progress update.pdf

 

[Vern]

Fenton destroyed your thread with only the second post. :lamo But just out of curiousity, does it really sound like a Conservative idea to give loans to people who really don't qualify for the sake of equality? Sounds more like a Lib idea, doesn't it?

Its funny you say that because I routinely ask fenton what his posts have to do with the Bush Mortgage Bubble. He never answers that question. Maybe you could explain the connection remembering Bush (see above) told you it was "dramatically lower lending standards starting late 2004". And giving loans to poor people for the sake of equality is not conservative but that's not what caused the Bush Mortgage Bubble. Do you know what sounds conservative, preempting all state laws against predatory lending because banks felt they could make more money

Acting on a request from a national bank, the OCC in 2003 concluded that federal law preempts the provisions of the Georgia Fair Lending Act (GFLA) that would otherwise affect national banks’ real estate lending. At this same time, the OCC also proposed a final rule to clarify the types of state laws that are applicable to national banks. In early 2004, the OCC adopted a final rule providing that state laws that regulate the terms of credit are preempted. The main features of state anti-predatory lending statutes are typically provisions that restrict or prohibit certain loan terms.
http://www.occ.gov/publications/publications-by-type/economics-working-papers/2008-2000/wp2004-4.pdf

Now read this part real slow. This is why Bush preempted all state laws against predatory lending


In addition, clarification of the applicability of state laws to national banks should remove disincentives to subprime lending and increase the supply of credit to subprime borrowers.

 

[JC Callender]

Its funny you say that because I routinely ask fenton what his posts have to do with the Bush Mortgage Bubble. He never answers that question. Maybe you could explain the connection remembering Bush (see above) told you it was "dramatically lower lending standards starting late 2004". And giving loans to poor people for the sake of equality is not conservative but that's not what caused the Bush Mortgage Bubble. Do you know what sounds conservative, preempting all state laws against predatory lending because banks felt they could make more money

Acting on a request from a national bank, the OCC in 2003 concluded that federal law preempts the provisions of the Georgia Fair Lending Act (GFLA) that would otherwise affect national banks’ real estate lending. At this same time, the OCC also proposed a final rule to clarify the types of state laws that are applicable to national banks. In early 2004, the OCC adopted a final rule providing that state laws that regulate the terms of credit are preempted. The main features of state anti-predatory lending statutes are typically provisions that restrict or prohibit certain loan terms.
http://www.occ.gov/publications/publications-by-type/economics-working-papers/2008-2000/wp2004-4.pdf

Now read this part real slow. This is why Bush preempted all state laws against predatory lending


In addition, clarification of the applicability of state laws to national banks should remove disincentives to subprime lending and increase the supply of credit to subprime borrowers.

Subprime lending is derived from the liberal philosophy of equality for everyone. If everyone paid their mortgage, we wouldn't have had problems, but we did have problems because money was lent to people who weren't realistically qualified, it's really as simple as that. Even if Bush supported this, you shouldn't be shoving it in his face and blaming him because it's ultimately a liberal idea. It's like when libs say "hey, look at red states and all of the people on welfare"...and I don't get the complaint because they're your programs. You should be proud, but you should also realize that these folks would never be on welfare if it wasn't for liberal ideas.

 

[SenorXm/Sirius]

Who repealed Glass-Steagall again? Sure wasn't Bush.

You do know that the bill Clinton signed that destroyed Glass-Steagall was called the Gramm-Leach-Bliley Act.. Those 3 names on that Act BTW, all Republican Senators. Phil Gramm also pushed through other bills that allowed Wall Street to run wild and lead to the crash.

That's what's weird whenever this housing bubble/crash discussion pops up. Most, not all, most Republicans REFUSE to put any blame on their own party. They pick and choose and point out the mistakes the Dems made, and they made them too, but then dance around and ignore what the Republicans in Congress did, and what Bush did that were also mistakes and helped lead to the crash.

 

[SenorXm/Sirius]

Even if Bush supported this, you shouldn't be shoving it in his face and blaming him because it's ultimately a liberal idea.

Yep, like I said. Of all the excuses to cover-up for the GOP mistakes leading to the crash this is 1 of the saddest. And shows just how brainwashed some Republicans are.

It's a liberal idea so the Republicans and Bush should be excused for their F'ups?! lol

I hope you are kidding, but I doubt it.

Anyway what companies like Country Wide were doing, giving bad loans to people was mostly about greed and commissions, it really had nothing to do with a political ideology.

 

[Fletch]

You do know that the bill Clinton signed that destroyed Glass-Steagall was called the Gramm-Leach-Bliley Act.. Those 3 names on that Act BTW, all Republican Senators. Phil Gramm also pushed through other bills that allowed Wall Street to run wild and lead to the crash.

By my count, that is 3 senate votes. Where did the other 87 senate votes come from?

That's what's weird whenever this housing bubble/crash discussion pops up. Most, not all, most Republicans REFUSE to put any blame on their own party.

That might just be because leftist hacks start off any discussion of what happened with phrases like "the Bush Mortgage Bubble" or the Great Bush Recession" or some such nonsense.

 

[Fletch]

Yep, like I said. Of all the excuses to cover-up for the GOP mistakes leading to the crash this is 1 of the saddest. And shows just how brainwashed some Republicans are.

It's a liberal idea so the Republicans and Bush should be excused for their F'ups?! lol

I hope you are kidding, but I doubt it.

Anyway what companies like Country Wide were doing, giving bad loans to people was mostly about greed and commissions, it really had nothing to do with a political ideology.

That last is true. It had more to do with the fact that Countrywide had a market for any bad loan they would sign--Fannie and Freddie. They didn't care if the loan was good or not, they were going to package it up and sell it off anyway.

 

[Manc Skipper]

Subprime lending is derived from the liberal philosophy of equality for everyone. If everyone paid their mortgage, we wouldn't have had problems, but we did have problems because money was lent to people who weren't realistically qualified, it's really as simple as that. Even if Bush supported this, you shouldn't be shoving it in his face and blaming him because it's ultimately a liberal idea. It's like when libs say "hey, look at red states and all of the people on welfare"...and I don't get the complaint because they're your programs. You should be proud, but you should also realize that these folks would never be on welfare if it wasn't for liberal ideas.

Sub prime lending was predicated on the debt being repackaged and sold on, putting the lender at no risk. Moneymaking scams which erupted from private sector lenders.

 

[JC Callender]

Yep, like I said. Of all the excuses to cover-up for the GOP mistakes leading to the crash this is 1 of the saddest. And shows just how brainwashed some Republicans are.

It's a liberal idea so the Republicans and Bush should be excused for their F'ups?! lol

I hope you are kidding, but I doubt it.

Anyway what companies like Country Wide were doing, giving bad loans to people was mostly about greed and commissions, it really had nothing to do with a political ideology.

The Republicans during Bush's administration warned about this crisis on several occasions (see post #2). But my point is, wouldn't you find it odd if a Democrat had a major program to cut taxes and it didn't work and all of the Conservatives blamed him/her for it? Of course it would be odd, because most Conservatives believe in cutting taxes.

 

[SenorXm/Sirius]

That last is true. It had more to do with the fact that Countrywide had a market for any bad loan they would sign--Fannie and Freddie. They didn't care if the loan was good or not, they were going to package it up and sell it off anyway.

It went far beyond Fannie, Google what some of the CountryWide employees were doing. And remember mortgage banks like Coutrywide had nothing to do with CRA. Also without the ratings agencies stamping those garbage loan packages AAA, there may not have been a bubble.

It was greed, a lot of it. And yes the borrowers take some of the blame too.

By my count, that is 3 senate votes

Clinton wouldn't have had a bill called Gramm-Leach-Bliley to sign if those 3 names didn't push it and get it to his desk.

There's PLENTY of blame to go around. Both sides of the political aisle, and everyone involved from the WS banks right down to the borrowers, and everyone in between.

 

[SenorXm/Sirius]

The Republicans during Bush's administration warned about this crisis on several occasions (see post #2). But my point is, wouldn't you find it odd if a Democrat had a major program to cut taxes and it didn't work and all of the Conservatives blamed him/her for it? Of course it would be odd, because most Conservatives believe in cutting taxes.

For decades the Republicans have been 'anti illegal immigration'. Or so they say. Yet they've done NOTHING to stop it. Actually Reagan gave amnesty and Bush 2 wanted to.

MY POINT IS don't always believe the 'party line'. Just because Bush warned of a crisis a few times means NOTHING because as been proven he also did a lot to up home ownership by lowering standards for lending to poorer people.

 

[jaeger19]

He really didn't but, mkay.



It doesn't sound like anyone's idea, but you liars will make hay out of anything.

Come on Kobie.

You liars? Like calling it the "Bush Mortgage Bubble?"

Anyone with any objectivity understands that the underpinnings of the mortgage crisis started well before Bush. And Bush had little to do with it.

 

[jaeger19]

For decades the Republicans have been 'anti illegal immigration'. Or so they say. Yet they've done NOTHING to stop it. Actually Reagan gave amnesty and Bush 2 wanted to.

MY POINT IS don't always believe the 'party line'. Just because Bush warned of a crisis a few times means NOTHING because as been proven he also did a lot to up home ownership by lowering standards for lending to poorer people.

How did Bush personally lower standards of lending to poorer people?

 

[faithful_servant]

Wow, it took 10 years after the Bush Mortgage Bubble popped for defaults to finally get back to normal. that just shows how bad the Bush Mortgage Bubble was.

According to Capital Economics, the delinquency rate for US mortgages and foreclosure rate for homes are now back to their historical averages.

US delinquency and foreclosure rate down - Business Insider

It wasn't the Bush mortgage bubble, it was the Dem. Congress mortgage bubble.... It was a Dem congress that passed the laws that allowed the bubble to form and it was the impending election of a Dem. congress and it's anticipated anti-business attitude that caused it to pop.

 

[Fledermaus]

Wow, it took 10 years after the Bush Mortgage Bubble popped for defaults to finally get back to normal. that just shows how bad the Bush Mortgage Bubble was.

According to Capital Economics, the delinquency rate for US mortgages and foreclosure rate for homes are now back to their historical averages.

US delinquency and foreclosure rate down - Business Insider

Who's mortgage bubble?

 

[Fenton]

You do know that the bill Clinton signed that destroyed Glass-Steagall was called the Gramm-Leach-Bliley Act.. Those 3 names on that Act BTW, all Republican Senators. Phil Gramm also pushed through other bills that allowed Wall Street to run wild and lead to the crash.

That's what's weird whenever this housing bubble/crash discussion pops up. Most, not all, most Republicans REFUSE to put any blame on their own party. They pick and choose and point out the mistakes the Dems made, and they made them too, but then dance around and ignore what the Republicans in Congress did, and what Bush did that were also mistakes and helped lead to the crash.

Glass steagal had little to do with the Subprime fiasco.

Its a Red herring pushed by people who refuse to acknowledge reality.

2 years prior to Glass Steagal ( 1998 ) Freddie Mac securtizied the FIRST large bundle of MBSs backed by Subprime loans and guaranteed 380 Million dollars in Subprime backed securities

From 1998 to 2004 the GSEs purchased securtizied and sold off as " AAA " MBSs hundreds of Billions of dollars in Subprime debt

 

[TurtleDude]

Fenton destroyed your thread with only the second post. :lamo But just out of curiousity, does it really sound like a Conservative idea to give loans to people who really don't qualify for the sake of equality? Sounds more like a Lib idea, doesn't it?

it was sort of set up like a t-ball. it was the lib idea to give loans to people who objectively didn't qualify for the loans. More "fairness" nonsense. Economic reality generally prevails over Emoto-babbling pandering for votes