anybody recall the details how bill clinton got the affirmative action mortgage laws changed in 1995?
robert greenwald and james h. dean, democrat propagandists
- tiny_lil_hottieLv 71 decade agoBest Answer
In the late 1990's, the then CEO Franklin Raines relaxed lending standards at Fannie Mae to allow subprime borrowers to obtain loans. This was done under the direction of the Clinton Administration. Relaxing of Lending Standards
the last one by time is a really good one since it says how fannie mae was originally created to bail out the economy yet once put on its own it failed and now the goverment wants to do it again to bail out the economy, maybe they will learn it can't function without the government this time. cause it was government owned until it started weaning away in 92.
- 1 decade ago
I can understand an uneducated first time homebuyer not understanding what they can really afford.... not understanding how much property taxes and insurance will add to that seemingly affordable monthly payment..
But, HOW MANY LOAN OFFICERS COULDN"T DO THE MATH????
I'm in Florida, I've viewed the Lis Pendens files and the mortgages attached to them - almost all FULLY FINANCED with NO MONEY DOWN to people who never lived in the property and have a homesteaded residence elsewhere - speculators. Who thought they could flip them for profit before the bill came due because home prices were rising tens of thousands of dollars a month as interest rates were going down. The realtors got their money, the appraisers got their money, the loan originators got their money and didn't care whether the buyer could pay or not - because they were going to package and sell the mortgages anyway. Approx. 300-500 Lis Pendens A WEEK in my county alone since I've been keeping track (about a year.) The speculators didn't have anything to lose with no money down. We don't have the economic base in my area to support every house in the county being worth upward of a quarter of a million dollars. After the speculators drove the prices up, there was nobody who could afford to buy these ovepriced houses but other speculators... they all stopped buying and you see what's happened. A significantly smaller but notable number are people who took out large 2nd mortgages based on outrageously inflated property values and just got in too deep.
- 1 decade ago
CAUSE HE IS THE FREAKIN MAN! THATS HOW!!!