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Barney Frank admits truth about Fannie

Re: Barney Frank admits truth about Fannie & Freddie

yeah, i know what you mean.

bigots make me feel the same way.

geo.



barney frank is a disgrace to congress and gays and bashing that asshole and his boyfriend running a chickenhawk operation out of a government paid for apartment is hardly bigotry.

people with no sense of humor are another thing that make me puke as well
 
Re: Barney Frank admits truth about Fannie & Freddie

Ever since the mortgage lenders went belly up, the left has denied that the revisions to the CRA made by the Clinton administration were responsible, including Barney Frank. That all changed in a CNBC interview.

A little bit of knowledge is a dangerous thing.

Let's start with the fact that the executive branch doesn't write or revise legislation. You do know that, Grim, don't you?

Google CRA 2005 revisions if you really want to be informed.
 
Re: Barney Frank admits truth about Fannie & Freddie

he is evil for attempting to provide homes for low-income people. he is even more evil for admitting that he tried too hard to provide homes for low-income people.

the evil son of a bitch. we should just kill him.

geo.

I'm sorry I missed this one earlier.

It's not evil to want low income families to own homes. What's evil is forcing lenders, under the guise of "affirmative action", to issue home mortgages to families that don't earn enough money to make the payments. That is the definition of evil my friend.

There is a reason banks and mortgage lenders had strict lending standards, and it wasn't to discriminate against the poor. It was to assure that the people they extended credit to could pay it back. The government had no business getting involved in the home mortgage industry in the first place, and now we are seeing the results of their interference.

Someone once said to me, "If the government wanted low income people to own homes, why don't they just build small, affordable homes and sell them to low income families at cost, with no down payment?" I told that person, that in theory, that sounds like a good idea when you consider that a home builder can construct a small family home for as little as $50 thousand dollars in most states.... The problem is, the government is so inefficient and riddled with corruption, that that same home would end up costing them twice as much to build, making it not only unaffordable to low income families, but not worth it in the first place. The other thing that this person doesn't understand, is human nature. When a person has to save for years to come up with 10, 20 or 30 thousand dollars for a down payment, they will do everything in their power to protect that investment. When a person doesn't have to risk any of their hard earned money, it's just like renting, and they have nothing to lose if they don't make the payments or let the house fall apart. They will simply move out and go back to renting again. It's human nature.

That is the problem with so many liberal/progressive ideas and programs.... They sound good in theory, but fail to take into account the long term effects of their policies, as well as take into account human nature.

.
 
Re: Barney Frank admits truth about Fannie & Freddie

Maybe this article from the New York Times "Fannie Mae Eases Credit To Aid Mortgage Lending" from September, 1999 will help you understand what happened. Here are a few key excerpts:



Then of course there were the warnings issued:



Then there was this:



Are you getting the picture yet? The government, specifically the Clinton Administration, pushed Fannie and Freddie to purchase risky home loans from banks, which allowed banks to accept these loans because they wouldn't be at risk should they default. This rendered the revisions to the CRA irrelevant, but it's those revisions that gave the mandate to the Clinton Administration that led to forcing Fannie and Freddie to take on the bad loans that led us to where we are today.

I'll say it again... The time for excuses is over.

How about this little tidbit right from one of your quotes


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
The banks obvisously wanted tio make these loans and pushed the government to let Fannie and Freddie back the loans that the institutions made quite eagerly by the way. The banks were not forced to make the horrible loans they did, they wanted to. They just wanted Fannie and Freddi to back them. Should Fannie and Freddie backed those loans, of course not, but remember they did not make the loans, the banks did. They

Were their problems with Fannie and Freddie most definately, but they did not force the banks to make bad loans, nor did the CRA. The banks made them willingly as they were making a good profit from them (untill they went bad)
 
Re: Barney Frank admits truth about Fannie & Freddie

A little bit of knowledge is a dangerous thing.

Let's start with the fact that the executive branch doesn't write or revise legislation. You do know that, Grim, don't you?

Google CRA 2005 revisions if you really want to be informed.

I read up on that long ago. The CRA in my opinion, was for nothing more than politics. It was so that politicians in Washington could say "See, I care about low income families". The reason the changes in the 90's had much more of an effect that the original CRA from the Carter administration, was because of enforcement. The CRA was nothing more than a piece of paper that realistically couldn't be enforced because of the risk to lenders. All that changed when Janet Reno and the Clinton administration first decided to enforce the CRA by threatening banks into compliance, then strong arming GSE's Fannie Mae and Freddie Mac into purchasing these risky loans. Since Fannie and Freddie told banks and mortgage lenders they would buy up any and all their risky loans, they were then free from risk, so issued more and more of those risky loans, and that's what has put us in the predicament we are in today.

.
 
Re: Barney Frank admits truth about Fannie & Freddie

How about this little tidbit right from one of your quotes


The banks obvisously wanted tio make these loans and pushed the government to let Fannie and Freddie back the loans that the institutions made quite eagerly by the way. The banks were not forced to make the horrible loans they did, they wanted to. They just wanted Fannie and Freddi to back them. Should Fannie and Freddie backed those loans, of course not, but remember they did not make the loans, the banks did. They

Were their problems with Fannie and Freddie most definately, but they did not force the banks to make bad loans, nor did the CRA. The banks made them willingly as they were making a good profit from them (untill they went bad)

Very true, but if it weren't for Fannie and Freddie being pushed by the Clinton administration into buying these risky loans (as was pointed out in the article), the banks would have never made them. Remember, Fannie and Freddie were GSE's (Government Sponsored Enterprises) which in essence laid the responsibility of covering those loans on the tax payer.

No matter how you slice it, government interference is directly responsible for this mess.
 
Re: Barney Frank admits truth about Fannie & Freddie

Very true, but if it weren't for Fannie and Freddie being pushed by the Clinton administration into buying these risky loans (as was pointed out in the article), the banks would have never made them. Remember, Fannie and Freddie were GSE's (Government Sponsored Enterprises) which in essence laid the responsibility of covering those loans on the tax payer.

No matter how you slice it, government interference is directly responsible for this mess.

To a certain degree yes but governmental interference was not the only reason

Low interest rates from the fed helping to push up housing demand and prices

MBS being rated as AAA by the rating agencies for sale to private institutions. The MBS's were clearly not AAA quality and the agencies were being paid by the institutions creating the MBS to rate them. A clear conflict of interest. The collapse in value of MBSs is a primary reason for AIG Leahman, Bear and others to collapse.

The MBS market removed risk from the mortgage originator, creating an incentive to lower standards in approving mortgages. The originator would not be effected by the mortgage going into default. This worked up untill the originators could not dump the mortgages fast enough (see Countrywide).

Overall in my opinion the two main reasons for the housing crisis were the very low interest rates set by the fed, and the creation and expansion of the MBS market.


The CRA played a small role, Fannie and Freddie a major one, the Fed a major one, the MBS market a major one
 
Re: Barney Frank admits truth about Fannie & Freddie

I read up on that long ago. The CRA in my opinion, was for nothing more than politics. It was so that politicians in Washington could say "See, I care about low income families". The reason the changes in the 90's had much more of an effect that the original CRA from the Carter administration, was because of enforcement. The CRA was nothing more than a piece of paper that realistically couldn't be enforced because of the risk to lenders. All that changed when Janet Reno and the Clinton administration first decided to enforce the CRA by threatening banks into compliance, then strong arming GSE's Fannie Mae and Freddie Mac into purchasing these risky loans. Since Fannie and Freddie told banks and mortgage lenders they would buy up any and all their risky loans, they were then free from risk, so issued more and more of those risky loans, and that's what has put us in the predicament we are in today.

.

Another excellent point. It does seen that some on the left are tortured to acknowledge the reality of what lead us to the current situation. And both parties share guilt.....


.


.
 
Re: Barney Frank admits truth about Fannie & Freddie

Here's what seems to be lost in this whole discussion:

Old Homeowners: Making tons of money because their houses were appreciating at an unbelievable rate. Low interest rates allowed quick and cheap access to their new found equity.
New Homeowners: Making tons of money by finally being able to invest (cheaply) and build equity in their own property instead of renting at a cheap rate.
Builders: Making tons of money by being able to move new property.
Real Estate Agents: Making tons of money by moving and flipping houses.
Mortgage Brokers: Making tons of money by a ton of new loans. No risk since they sell it to the banks.
Banks: Making tons of money by investors buying their Mortgage Bonds.
Investors: Making a lot more money than they were investing in the cheap government debt.
Insurers: Making a ton of money by insuring the investors against default.

Seems to me that, in the face of THAT MUCH money being thrown around, they were HARDLY waiting with baited breath over Barney Frank's opinion of the mortgage situation.

The crisis was caused by bad investments in behalf of banks and insurers and nobody else.
 
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Re: Barney Frank admits truth about Fannie & Freddie

Here's what seems to be lost in this whole discussion:

Old Homeowners: Making tons of money because their houses were appreciating at an unbelievable rate. Low interest rates allowed quick and cheap access to their new found equity.
New Homeowners: Making tons of money by finally being able to invest (cheaply) and build equity in their own property instead of renting at a cheap rate.
Builders: Making tons of money by being able to move new property.
Real Estate Agents: Making tons of money by moving and flipping houses.
Mortgage Brokers: Making tons of money by a ton of new loans. No risk since they sell it to the banks.
Banks: Making tons of money by investors buying their Mortgage Bonds.
Investors: Making a lot more money than they were investing in the cheap government debt.
Insurers: Making a ton of money by insuring the investors against default.

Seems to me that, in the face of THAT MUCH money being thrown around, they were HARDLY waiting with baited breath over Barney Frank's opinion of the mortgage situation.

The crisis was caused by bad investments in behalf of banks and insurers and nobody else.

But, but ,but...

... HE"S GAY, doncha know? And so he's evil and powerful enough to crash the economy of the whole planet all by himself. Those poor naive multi-national bankster were like putty in his hands, like carnival marks, I tell ya...

And didja hera?

HE'S GAY!
 
Re: Barney Frank admits truth about Fannie & Freddie

But, but ,but...

... HE"S GAY, doncha know? And so he's evil and powerful enough to crash the economy of the whole planet all by himself. Those poor naive multi-national bankster were like putty in his hands, like carnival marks, I tell ya...

And didja hera?

HE'S GAY!
I don't think anyone is saying it's all Barney's fault. He has always been the great defender of Fannie Mae. No matter, if something worrisom was said about FM, he'd get all red in the face like he was about to blow a gasget. I saw him go into a total rant not long ago when the Rep talked of reforming them. He has received quite a bit of money from F&F as has all of Congress in campaign contributions.
Barney also was romanticly involved with Fanny Mae executive, Herb Moses.
I didn't even know Barney was gay for a long time. I learned that from a liberal. I don't know why that is even important in this discussion.
 
Re: Barney Frank admits truth about Fannie & Freddie

To a certain degree yes but governmental interference was not the only reason

Low interest rates from the fed helping to push up housing demand and prices

MBS being rated as AAA by the rating agencies for sale to private institutions. The MBS's were clearly not AAA quality and the agencies were being paid by the institutions creating the MBS to rate them. A clear conflict of interest. The collapse in value of MBSs is a primary reason for AIG Leahman, Bear and others to collapse.

The MBS market removed risk from the mortgage originator, creating an incentive to lower standards in approving mortgages. The originator would not be effected by the mortgage going into default. This worked up untill the originators could not dump the mortgages fast enough (see Countrywide).

Overall in my opinion the two main reasons for the housing crisis were the very low interest rates set by the fed, and the creation and expansion of the MBS market.


The CRA played a small role, Fannie and Freddie a major one, the Fed a major one, the MBS market a major one

The persistent current account deficit likely had a part in the low interest rates as well. For example, many European banks/FI's were buying MBS/MBS CDO's from US companies during the housing boom. Remember, the fed only sets overnight rates for participating banks, they don't set morgage rates, although their policy can have some effect on them.
 
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Re: Barney Frank admits truth about Fannie & Freddie

Very true, but if it weren't for Fannie and Freddie being pushed by the Clinton administration into buying these risky loans (as was pointed out in the article), the banks would have never made them. Remember, Fannie and Freddie were GSE's (Government Sponsored Enterprises) which in essence laid the responsibility of covering those loans on the tax payer.

No matter how you slice it, government interference is directly responsible for this mess.

The CRA played a very small role in the crisis. The implicit garantee made by fannie and freddie on the other hand was a much bigger issue, one which we still need to resolve.
 
Re: Barney Frank admits truth about Fannie & Freddie

I don't think anyone is saying it's all Barney's fault. He has always been the great defender of Fannie Mae. No matter, if something worrisom was said about FM, he'd get all red in the face like he was about to blow a gasget. I saw him go into a total rant not long ago when the Rep talked of reforming them. He has received quite a bit of money from F&F as has all of Congress in campaign contributions.
Barney also was romanticly involved with Fanny Mae executive, Herb Moses.
I didn't even know Barney was gay for a long time. I learned that from a liberal. I don't know why that is even important in this discussion.

I suggest you look up the phrase "diversionary tactic."

Did I mention that Barney Frank is gay?
 
Re: Barney Frank admits truth about Fannie & Freddie

The CRA played a very small role in the crisis. The implicit garantee made by fannie and freddie on the other hand was a much bigger issue, one which we still need to resolve.

I stated the following a few pages back on this thread:

The government, specifically the Clinton Administration, pushed Fannie and Freddie to purchase risky home loans from banks, which allowed banks to accept these loans because they wouldn't be at risk should they default. This rendered the revisions to the CRA irrelevant, but it's those revisions that gave the mandate to the Clinton Administration that led to forcing Fannie and Freddie to take on the bad loans that led us to where we are today.
 
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