Frank's Fannie
Printed From: MiddletownUSA.com
Category: Outside World
Forum Name: News, Info and Happenings outside Middletown
Forum Description: It might be happening outside Middletown, but it affects us here at home.
URL: http://www.middletownusa.com/forum/forum_posts.asp?TID=586
Printed Date: May 01 2024 at 11:23pm
Topic: Frank's Fannie
Posted By: John Beagle
Subject: Frank's Fannie
Date Posted: Oct 07 2008 at 3:37pm
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The roots of this crisis go back to the Carter administration. That was when government officials, egged on by left-wing activists, began accusing mortgage lenders of racism and "redlining" because urban blacks were being denied mortgages at a higher rate than suburban whites. The pressure to make more loans to minorities (read: to borrowers with weak credit histories) became relentless. Congress passed the Community Reinvestment Act, empowering regulators to punish banks that failed to "meet the credit needs" of "low-income, minority, and distressed neighborhoods." Lenders responded by loosening their underwriting standards and making increasingly shoddy loans. The two government-chartered mortgage finance firms, Fannie Mae and Freddie Mac, encouraged this "subprime" lending by authorizing ever more "flexible" criteria by which high-risk borrowers could be qualified for home loans, and then buying up the questionable mortgages that ensued. Time and time again, Frank insisted that Fannie Mae and Freddie Mac were in good shape. Five years ago, for example, when the Bush administration proposed much tighter regulation of the two companies, Frank was adamant that "these two entities, Fannie Mae and Freddie Mac, are not facing any kind of financial crisis." When the White House warned of "systemic risk for our financial system" unless the mortgage giants were curbed, Frank complained that the administration was more concerned about financial safety than about housing. http://www.boston.com/bostonglobe/editorial_opinion/oped/articles/2008/09/28/franks_fingerprints_are_all_over_the_financial_fiasco/ - Full Boston.com Story ------------- http://www.johnbeagle.com/" rel="nofollow - John Beagle Middletown USA News of, for and by the people of Middletown, Ohio. |
Replies:
Posted By: Middletown News
Date Posted: Oct 07 2008 at 3:39pm
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Just so you know Barack Obama sued Citibank for not writing mortgages for "minorities" who have no business getting a mortgage until they get their finances in order and save up a proper down payment.
Obama is part and parcel at fault for perpetuating the very schemes that got us here in the first place. I'm sure the MSM will get right on asking him about it.
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Posted By: Mike_Presta
Date Posted: Oct 07 2008 at 5:51pm
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Mr. H:
Your factual posts are spot on.
The Economic Obliteration Act passed last week did nothing to address the issues that you mentioned. In fact, it contains language to ENSURE that loans to unqualified borrowers continue, thus also guaranteeing that the "crisis" will NOT be solved!!!
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Posted By: Pacman
Date Posted: Oct 07 2008 at 10:05pm
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McCain should have hired this guy:
http://www.youtube.com/watch?v=LYqv_07Sceg - http://www.youtube.com/watch?v=LYqv_07Sceg
http://www.youtube.com/watch?v=pZ6srr6xUyg - http://www.youtube.com/watch?v=pZ6srr6xUyg
http://www.youtube.com/watch?v=sW6lW8uD1ck - http://www.youtube.com/watch?v=sW6lW8uD1ck
http://www.youtube.com/watch?v=16aBNduAyQ4 - http://www.youtube.com/watch?v=16aBNduAyQ4
http://www.youtube.com/watch?v=oM3Ls8NNc5Q - http://www.youtube.com/watch?v=oM3Ls8NNc5Q
http://www.youtube.com/watch?v=n2eYJo6-heE - http://www.youtube.com/watch?v=n2eYJo6-heE
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Posted By: VietVet
Date Posted: Oct 08 2008 at 7:03am
| Not going to attempt to debate you, Mike, Jonathan and Pacman. I'm outnumbered here and will not tackle all of you on this. Just will say that while you all are accusing Barney Frank, Obama and just the Democratic side of the aisle, please be open-minded enough to include some of your Republican friends in these accusations. While I have no doubt that the accusations that you present are based on facts, there have been Republicans that have been involved also along the way. Perhaps you could mention them in your posts also as the posts seem to place all the blame on one party. Fair enough? Open- minded enough? |
Posted By: .308
Date Posted: Oct 08 2008 at 10:01am
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If I were king I might be tempted to hang them all as traitors. Would that help?
But I agree with the first post and think the social engenierrring, primarealy pushed by the democrats, is the casue for the vast majority of all of our economic problems.
Remember: "No good deed goes unpunished"
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Posted By: Mike_Presta
Date Posted: Oct 08 2008 at 12:27pm
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Vet:
.308 is right on target.
However, I do agree with you, Vet, that there is plenty of culpability on BOTH sides of the aisle.
The "Economic Obliteration Act" passed last week was especially sinister evidence of BI-PARTISAN recklessness. I truly believe that this act is the beginning of the end of America as we know it.
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Posted By: Mike_Presta
Date Posted: Oct 08 2008 at 1:23pm
Vet:
I understand your not wanting to debate several opponents on a blog, as it is cumbersome and time-consuming.
However, I know several areas where we agree and some where we disagree. I believe that you and I could have a rational, gentlemanly discussion/debate of this (or any) issue.
I suggest Fricker's, or the location of your choice. I'll buy the beer!
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VietVet wrote:Posted By: John Beagle
Date Posted: Oct 08 2008 at 2:30pm
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"I suggest Fricker's, or the location of your choice. I'll buy the beer!"
They server Beer at Frickers? LOL
But seriously, I blame all congressional finance committee members for being asleep at the switch. Barny is the highest ranking member of the committee. So I blame him the most. ------------- http://www.johnbeagle.com/" rel="nofollow - John Beagle Middletown USA News of, for and by the people of Middletown, Ohio. |
Posted By: Pacman
Date Posted: Oct 08 2008 at 2:46pm
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Hey Vet I look at this election as the lesser of two evils. I am not happy with either candidate. I don't see Obama as having the plan to fix the world or even just the US of A. McCain is only marginally better on some issues. Just got this from McCain:
My Friends,
Millions of Americans on Main Street are feeling the effects of our current economic crisis largely brought on by corruption and greed at Fannie Mae, Freddie Mac and Wall Street. Our next president must come into office with a plan to address the very root the failing housing market. Last night, during my debate with Senator Obama, I announced my plan to fix the root of our problem and I'd like to share a little more with you today. If elected president, I will direct my Treasury Secretary to implement an http://link.johnmccain.com/?95-6128-1094636-64282 - American Homeownership Resurgence Plan to keep families in their homes, avoid foreclosures, save failing neighborhoods, stabilize the housing market and attack the roots of our financial crisis. America's families are bearing a heavy burden from falling housing prices, mortgage delinquencies, foreclosures, and a weak economy. It is important that those families who have worked hard enough to finance homeownership not have that dream crushed under the weight of the wrong mortgage. For those that cannot make inflated payments or their mortgage exceeds the value of their home, mortgages must be re-structured to put losses on the books and put homeowners in manageable mortgages. This Resurgence Plan would purchase mortgages directly from homeowners and mortgage servicers, and replace them with manageable, fixed-rate mortgages that will keep families in their homes. By purchasing the existing, failing mortgages the resurgence plan will eliminate uncertainty over defaults, support the value of mortgage-backed derivatives and alleviate risks that are freezing financial markets. I am ready to lead our country out of this financial crisis and I am ready to work with anyone and everyone who will help. Together, I know we can work together to find solutions for these challenging times. Please do your part today and spread the word about my new plan by http://link.johnmccain.com/?95-6128-1094636-64283 - forwarding this email on to your neighbors, friends, family and coworkers. Thank you for your time and support. Sincerely,  John McCain P.S. Homeownership represents the very core of our American economic system. This is not the time for politics. We must move aggressively to provide relief and stability for all Americans |
Posted By: VietVet
Date Posted: Oct 08 2008 at 3:34pm
Pacman- Regarding the McCain information- just one question- McCain mentions the American Homeownership Resurgence Act-in the sixth paragraph, he mentions that "the Resurgence Plan will purchase the mortgages directly from homeowners and mortgage servicers and replace them with manageable fixed rate mortgages" etc.etc. He does not explain where this money will come from or who will provide the financing for this program. Can you explain in more detail how McCain will accomplish this and if it will cost more money to do so? IF, it costs the taxpayer more money, won't this add to the pot of taxpayer money that everyone is screaming about now? (ie.- the $700 billion + $140 billion pork added on)Is he saying he wants to spend more money on mortgage bailouts for homeowners that signed high risk loans? Why does he and others want to bail out these people with some of this money being paid in by people who DIDN't screw up and applied for legitimate loans that they could handle? Why give these irresponsible people a second chance to own a home and the financial lending places a second chance to make more bad loans and then, add insult to injury by asking the responsible people to help foot the bill? 
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Posted By: VietVet
Date Posted: Oct 08 2008 at 3:45pm
| And conversely, .308, I believe that the Republican sanctioned corporations of America, with the CEO's being supported in large part , by the Republican Party has also contributed to the downward spiral of our economic problems. The CEO's and the middle management have been the enemy for many years of the working class. They have done well for themselves while the middle class working people have taken it on the chin. In actuality, it is both parties that are guilty of damaging this country in many ways.They're just coming from different directions. You will have to excuse me for the bitterness toward management and CEO's. After you have been downsized three times since 1994, you tend to get a little hostile toward the people in power when they demonstrate that they believe you to be expendable as they take in the good life. |
Posted By: Pacman
Date Posted: Oct 08 2008 at 4:05pm
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Vet, I am hearing about this for the first time today as you are. I understand he mentioned this last night in the debate which I did not watch as I am personally campaigned out by both parties.
But he does state, "The new mortgage would be an FHA-guaranteed fixed-rate mortgage at terms manageable for the homeowner. The direct cost of this plan would be roughly $300 billion because the purchase of mortgages would relieve homeowners of “negative equity” in some homes. Funds provided by Congress in recent financial market stabilization bill can be used for this purpose; indeed by stabilizing mortgages it will likely be possible to avoid some purposes previously assumed needed in that bill."
Doable I don't know.
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Posted By: .308
Date Posted: Oct 08 2008 at 5:09pm
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VieVet, You remind me of a friend of mine. He quit a nice job with the EPA in the late 80's and started a 10 year cycle of being downsized by one large company after another. He moved so much, and was not shy about asking for help, that I did not want to answer his calls anymore by early 2000. But we must be careful not to swing so far the other way in our distrust or dislike of big business or those who are very well of. We must be careful to mind those in need while not discouraging those who are willing to work hard and take risks to better their financial situations at any level. I surf the web a lot and every day I am amazed at the level of entitlement many have come to expect. The other day for example I saw a comment on a popular site, digg.com, that went like this, and this is not an exaggeration: "I support Obama! Why should I have to pay anything for health care? Make the rich pay. I hate the rich, I hate the rich, they must pay, pay pay!" That person, and there are millions like that, has in my opinion gone too far. |
Posted By: Mike_Presta
Date Posted: Oct 08 2008 at 5:30pm
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This all STINKS!!!
It makes me wish that I would have been stupid enough to have gotten a bad mortgage.
I wonder if it's not too late to find a shyster and re-finance???
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Posted By: Pacman
Date Posted: Oct 08 2008 at 6:47pm
Mike that was my first thought also. Why was I stupid enough to get a low interest fixed rate mortgage on a home I and my wife could afford. Why couldn't I have been smart and got a home at twice what I could afford, with an interest only loan or 5 year arm.....etc.
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Posted By: Mike_Presta
Date Posted: Oct 08 2008 at 10:46pm
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Pac:
In addition, I was stupid enough to put 20% down in order to avoid paying PMI!!
That was a big chunk of dough that would come in handy today...now that the market (and my retirement funds) have gone so far south that I can see penguins!!
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Posted By: Vivian Moon
Date Posted: Oct 09 2008 at 8:26am
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Mike
Talking about PMI...Where is all this money that was was collected to insure these no money down loans? We need to rename this generation "I WANT IT NOW!"
Remember when house payment could not exceed 1 weeks bring home pay and you also needed 20% down...Oh, and the bank checked your credit before they gave you the money....Hey maybe we should do this again. |
Posted By: John Beagle
Date Posted: Oct 09 2008 at 10:04am
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Funny how the right thing to do is now perceived as the wrong thing.
That's socialism for you. ------------- http://www.johnbeagle.com/" rel="nofollow - John Beagle Middletown USA News of, for and by the people of Middletown, Ohio. |