Banks were not "forced to make loans," that's a ridiculous lie. Fannie and Freddie were programs they ABUSED?

...and made unsupported loans knowing the taxpayer would get stuck with the bill if it went wrong.

Wasn't the only thing Dems were guilty of is believing banks weren't incompetent and greedy enough to scr** us all when they had the chance?

Update:

I don't watch Fox News = I actually know something.

16 Answers

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  • Evas
    Lv 7
    7 years ago
    Favorite Answer

    They made the crap loans because they were more profitable on the front end. Wall Street chopped the mortgages and sold them as securities because they made more profit up front. That is what the private sector does to make profit. There is no consideration for the damage it does to others.

  • 3 years ago

    Necessities for making loans had been decreased throughout the board. It used to be apparent to someone at any place close the true estate market that humans that should not have been given a mortgage 10 years in the past were capable to get one. That is the truth. Now the lies to me seem to be those from liberals that need to cover over the fact that they fought for these measures that without problems reduced the due diligence required by means of banks up to now to verify eligibility for receiving loans. Sure, a few humans were competent to get loans and clearly make the payments where they'll have had a more difficult time before. But many more humans had been allowed into the real property market and had been unprepared to precise pay for the mortgage moving forward. So, the situation wasn't subprime loans as much because it was once subprime applicants that must never were accredited.

  • 7 years ago

    "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.

    Fannie Mae, the nation's 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."

    http://www.nytimes.com/1999/09/30/business/fannie-...

    ... did you say?

  • Frog
    Lv 6
    7 years ago

    The borrower bears some responsibility, but if you create an economic system that allows people to buy more than they can afford, they will. And that's a know fact, which is why we have regulations. So there's lots of blame to go around.

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  • Anonymous
    7 years ago

    The Community Reinvestment Act was used by bureaucrats and lawyers to force banks to make bad loans to people who would not be able to pay the money back. Obongo's name is even on at least one of these lawsuits, showing that he personally profited from the subprime lending disaster.

  • Anonymous
    7 years ago

    I think that like 5 percent of the loans were "forced" or heavily suggested... but 95 were totally on the banks...

  • 7 years ago

    The issue isn't that cut and dried either way. Are you suggesting that the CRA and other such legislation had no impact? Are you suggesting that people who knew damn well they couldn't afford a home share no blame?

    I received all sorts of crazy refi offers. I threw them all away and paid my house off 15 years early.

  • 7 years ago

    Why even bother posting in YA if you're only going to talk facts and common sense?

  • Anonymous
    7 years ago

    http://www.ffiec.gov/cra/history.htm

    Bank don't keep good score, Bank gets punished.

    Ratings tracked here:

    http://www.ffiec.gov/craratings/default.aspx

  • Anonymous
    7 years ago

    One of Bill Clinton's proudest moments (his words) is when he signed a bill REQUIRING that a certain number of loans were to be given to low income people.

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