Answers about who to blame about Fannie and Freddie Part one April 15, 2009Posted by kidkev in Fair Housing Act.
Tags: Barney Frank, Fair Housing Act, Fannie Mae, Freddie Mac
I have heard and keep hearing about how President Bush and company ruined the economy. I would like to set some records straight regarding some key issues. First off, the Fair Housing Act and the amendments pushed through Congress during President Clinton’s term are the root cause of the Fannie Mae and Freddie Mac crash and subsequent bailout. The Dems during Clinton’s term were in bed with these companies both figurative and literally.
In the 1990’s, Barney Frank’s efforts to deregulate Fannie Mae may have been a serious conflict of interest because his lover, Herb Moses, was an executive for Fannie Mae at the time Frank’s was on the House Banking Committee, which had jurisdiction over Fannie Mae
No conflict of interest here/. The people in charge of oversight were directly involved with the industry. This deregulation was in part, to make sure that banks were giving out loans to people who couldn’t afford them (predatory lending), then turning around and selling these bad loans to someone for them to charge at a higher percentage or foreclose and resell. This was so bad that Clinton’s Atty Gen Janet Reno brought a law suit against some banks in Illinois for discrimination. The banks stated that they were not discriminating against Blacks or Hispanics but the fact that they could not afford the mortgage due to either low income or on Welfare.
Under Clinton, the entire federal government put massive pressure on banks to grant more mortgages to the poor and minorities. Clinton’s secretary of Housing and Urban Development, Andrew Cuomo, investigated Fannie Mae for racial discrimination and proposed that 50 percent of Fannie Mae’s and Freddie Mac’s portfolio be made up of loans to low- to moderate-income borrowers by the year 2001.
While this is just the start of the issue, there are many more interesting factors regarding the fall of Freddie and Fannie. The next thing would be; why where they (Clinton and company) so interested in deregulation? If you asked them, they would say “It’s the American dream for everyone to own a house!”. Does that sound familiar? Actually it was rooted more in greed.
There is so much more to this but time is short. I will have some more info on this soon (next day or two) as well as some other very interesting info regarding who is really to blame and why. The most important thing to do is have the facts…”Above the rancor of the screaming liberals the voice of facts was heard and could not be disputed”…