Xian

[Sinner]

You posted the other day that Clinton did some stuff w/ Freddie and Fannie, suggesting that some of the mortgage stuff started going bad w/ him.


Did I read your post correctly?

[charlie brown]

I think what you're speaking about is a bill that clinton passed to allow (even require I think) sub-prime mortgages to be given out thus starting the housing bubble

[Sinner]

In 1991 he became Fannie's Mae's Vice Chairman, a post he left in 1996 in order to join the Clinton Administration as the Director of the U.S. Office of Management and Budget, where he served until 1998. In 1999, he returned to Fannie Mae as CEO, "the first black man to head a Fortune 500 company."[3]


Lawsuit lawsuit... accounting "errors" lawsuit lawsuit

Franklin Raines, while Chairman and CEO, began a pilot program in 1999 to issue bank loans to individuals with low to moderate income, and to ease credit requirements on loans that Fannie Mae purchased from banks. Raines promoted the program saying that it would allow consumers who were "A notch below what our current underwriting has required" to get home loans. The move was intended in part to increase the number of minority and low income home owners.[15] Some observers have noted that the expansion of easy credit to home buyers with a lesser ability to pay them back was one of the major contributing factors to the subprime mortgage crisis.

[PETA]

Originally Posted by matias

I think what you're speaking about is a bill that clinton passed to allow (even require I think) sub-prime mortgages to be given out thus starting the housing bubble

What you're thinking about is the Community Reinvestment Act (passed iirc under Carter). Clinton's policy on the bill actively encouraged (through threat of lawsuit) a very generous interpretation of the Act. That resulted in lots of shitty loans which Fannie bought up

[Sinner]

Originally Posted by St. Stalin the Apathetic

What you're thinking about is the Community Reinvestment Act (passed iirc under Carter). Clinton's policy on the bill actively encouraged (through threat of lawsuit) a very generous interpretation of the Act. That resulted in lots of shitty loans which Fannie bought up

so why didn't the evil republicans change that act?

[PETA]

Originally Posted by MicahB

so why didn't the evil republicans change that act?

they did... http://en.wikipedia.org/wiki/Communi...hanges_of_2005

In 2002 there was an inter-agency review of the effectiveness of the 1995 regulatory changes to the Community Reinvestment Act and new proposals were considered.[5] The Federal Deposit Insurance Corporation (FDIC), the Board of Governors of the Federal Reserve System, and the Office of the Controller of the Currency put new regulations into effect September of 2005.[9] The regulations were opposed by a contingent of Democrats because the action "undercuts the statutory purpose of the Act for institutions to meet the needs of low and moderate-income persons and communities by OTS."[10]

[Sinner]

hmmm... interesting...

it's all Clintons fault!

Kill them with fire!

[Sinner]

Another part of Xian's answer: