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| quote: | Originally posted by djjoshuaallen
you cant blame this on bush, as all the democrats so frequently do. democrats all pushed for deregulation on this as well over the past 10 years. The lobbyist won this one
But back to the housing problems & relaxed loan restrictions, those can be blamed on the legislation passed by democratic sen barny frank and his committe and their journey to give the american dream (a house) to all. Stated income, %0 down, %100+ LTV, are you kidding me? When will a democrats actaully own that one? |
This actually goes back to Bill Clinton. I excerpted an article from the New York Times from Sept 1999:
Fannie Mae, the nations biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.
In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers.
In moving, even tenatively, into this new area of lending, Fannie Mae is taking on significantly more risk...
If they fail, the government will have to step up and bail them out on the way it stepped up and bailed out the thrift industry.
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