Now That You Know Clinton Created The Housing Mess & Obama Was Against Fixing It, Do You Still Like Democrats?
It is documented Bill Clinton allowed Freddie and Fannie to get into the subprime loan business. Clinton also took away most required insurance that protected banks from foreclosures. Clinton thought the insurance was too expensive for extremely poor people.
It is documented by the FTC (Federal Trade Commission)
"Freddie Mac, one of the primary government-sponsored enterprises involved in the purchase of mortgages, recently announced plans to enter the secondary market in subprime loans by purchasing significant numbers of "A minus" subprime mortgages by 1998 and the higher-risk "B and C" loans by 1999.(20) "
"On June 6, 1996, President Clinton announced that he had directed FHA to reduce the up-front mortgage insurance premium (UFMIP) for first-time homebuyers who receive housing counseling"
Clinton also picked his subordinates that made it happen.
Obama has gotten over $100,000 from Freddie and Fannie.
- Anonymous1 decade agoFavorite Answer
Don't forget about this liberals:
Bush Fought to Regulate Freddie Mac and Fannie Mae 5 Years Ago Until Democrats Stopped Him
"The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago."
- PianoFanLv 61 decade ago
Freddie Mac and Fannie Mae were both private companies until they were recently taken over by the Govt.
Every State has it's own department of Insurance which regulates all insurance requirements, those requirements vary from state to state. All lenders have insurance companies behind them, including the credit card industry. The insurance to protect lenders from foreclosures does not come from the people, but from other insurance companies.
Most all lenders will buy out other lenders loans. If the firms are strong enough and financially sound to purchase different grade mortgages, they would have been acquiring large blocks from multiple lenders. They would not do so without the insurance companies behind them (these insurance arrangements are done with multiple insurance companies via reinsurance under State Regulatory laws).
IF in 1996 the reduction of upfront insurance was changed...(your link does not work)....it would have been back ended to the mortgage holder, so that the insurance was paid via increased monthly increased, an extra quarterly or bi-annual payment. Mortgage insurance is required for those who have had difficulty obtaining enough credit, don't have enough for a down payment etc. They are required to carry mortgage insurance in case something does happen with their payments. In lowering the upfront payment, does not mean it was taken away, it is simply spread out in payments, usually monthly. There is no way around mortgage insurance for those that are required to keep it.
Not all mortgage holders are required to carry mortgage insurance. It is not homeowners insurance, another separate requirement for getting a mortgage.
The second link is a letter from an oversight committee in Washington requesting a competent replacement for the position that was being vacated. This committee was an oversight committee to make sure that taxpayers were not being scammed or harmed in any way by predatory loans.
As for donations given to Senator Obama's Campaign by Freddie Mac and Fannie Mae or any connections...Both Senator Obama and Senator McCain have connections to both...The site below is extremely interesting for research purposes and provides allot of information.
"A former member of Barack Obama’s VP search team, James A. Johnson, served as chairman of Fannie Mae. Although the Obama campaign doesn’t take contributions from lobbyists, it has received significant donations from both companies’ employees and PACs.
John McCain’s connections to the two mortgage companies are more numerous. His campaign manager, Rick Davis, headed the Homeownership Alliance, an advocacy group for the two lenders. His close adviser, Charlie Black, is a long-time lobbyist whose firm represented Freddie Mac.
Two of McCain’s bundlers, supporters who help raise large amounts of money for the campaign, have ties to Fannie Mae. Robert H. Holt is a lobbyist for the firm, and Wayne Berman is managing director of Ogilvy Government Relations, which also represents the company.
A third McCain bundler, Geffrey T. Boisi, is a director of Freddie Mac."
Senator Obama did attempt to do something about the situation. In 2006 he wrote and introduced a piece of legislation called Stop Fraud Act, S2280, which went directly to the predatory loan process. The law did not pass, but one can't say that he didn't make the attempt.
- EZMZLv 71 decade ago
America survived in spite of the Clinton's not because OF the Clinton's.
All of this and China-Gate and White-Water too.
I used to have four pages of info on their dirt--all documented.
- enzomusiqLv 41 decade ago
Fannie and Freddie/Most Ridiculous Welfare Bill Ever
proof:A LIBERAL problem, replace it with a LIBERAL FASCISM SALUTION
"This incident (with Fannie and Freddie) is not the last one,"
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- Anonymous1 decade ago
and least we forget the infamous "no Doc Mortgages " the Dem's passed against the Rep's advice ..but hey what good ole Dem ever ever take sound advice.
- 1 decade ago
- xcnicoLv 41 decade ago
no, i'm i suppose to believe every word you say?.... give me some facts/ sources
first of all yeah THEY ARE PARTIALLY TO BLAME....
These companies are hurting, because they are not receiving the money from people they lent it to. Who do you think actually was in charge of dishing out the loans/mortages? Who do you think authorized large loans for people who where borrowing more than they could actually?
Dishonest employees, and it's at the expense of this entire country
No, i ultimately blame those who run those companies
- 1 decade ago
Never did like them.
Maverick + Barracuda
Hero + History
When will people learn to stop giving stuff to those who did not earn it themselves?
- ÂŅŦĬ ĂĈǾŖŇLv 61 decade ago
I am sorry, I just don't think they want to hear that stuff. Why is beyond me. I would rather have justice than absolute brainwashed presence in my life.
- Anonymous1 decade ago
NO!! I'm a Registered Democrat voting McCain / Palin