NY Times Article Revealed True Cause
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| Thu, 09-25-2008 - 5:10pm |
of Current Fannie Mae Crises...Any chance that the they will reprint their own article so their readers can see the true cause of the mortgage loan crises?
1999 NY Times Article Revealed True Cause of Current Fannie Mae Crises
By P.J. Gladnick (Bio | Archive)
September 25, 2008 - 16:25 ET
This is probably an article that the New York Times wishes it didn't have in its archives because it reveals the true culprits behind the current Fannie Mae meltdown. You will find "uncomfortable" truths in this September 30, 1999 article by Steven A. Holmes starting with the title, "Fannie Mae Eases Credit To Aid Mortgage Lending," that you won't find in current editions of the New York Times (emphasis mine):
In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring. -->click on link to continue http://newsbusters.org/blogs/p-j-gladnick/2008/09/25/1999-ny-times-article-revealed-true-cause-current-fannie-mae-crises

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Democrats love to redistribute income. . .hey, it buys votes.
BUT just think what could have been accomplished if the money wasted putting people into homes they couldn't afford had been put into education instead:
I agree that the democrats are not totally innocent, but in 1999 they had good intentions and did not foresee how predatory the bankers would become.
Look at my "credit crunch crisis" thread to see what the Bush administration did years later to exacerbate the problem, even when warned of an ensuing crisis.
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http://www.pnhp.org/news/2009/october/meet_the_new_health_.php
http://www.youtube.com/watch?v=DQTBYQlQ7yM
Yes, why would we want to promote home ownership to poor and minorities who throughout time have been redlined.
What good does it do to approve someone for a loan they cannot afford.
Better check your Congressional history here.
~ SW
And what would have happened had Fannie Mae threw the bird at "the increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people?" What do you think would happen to lease lenders had they said no to the "borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans?"
What do you think the Clinton Administration would have done if Fannie Mae had stuck to its original requirements for lending money?
Quotes taken from the NYT article:
http://query.nytimes.com/gst/fullpage.html?res=9C0DE7DB153EF933A0575AC0A96F958260&sec=&spon=&pagewanted=print
Good post.
I don't see how one can blame a political party for the current crisis.
<>
Bush would have changed the reqmts and the subprime mess would still be here today:
http://www.youtube.com/watch?v=ecwdBb4gAVI
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http://www.pnhp.org/news/2009/october/meet_the_new_health_.php
http://www.youtube.com/watch?v=DQTBYQlQ7yM
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