Does anybody have insight on the role fannie and freddie really played in this. I admit to still trying to piece it all together for myself. This is coming from somebody who wants to blame Clinton ofcourse..
Banks are required to lend to bad neighborhoods and low income
people on a percentage basis of what it lends to credit worthy
people in good neighborhoods under the community advancement
laws that were revised in 1996.
The banks don't set the standards, Freddie and Fannie
sets the standards. All the banks do is underwrite the loans
and then sell them to freddie and fannie as long as they meet
freddie and fannies guidelines
Full Version: More of the blame game
QUOTE (WhiskeyTango @ Sep 21 2008, 08:32 PM) 
Does anybody have insight on the role fannie and freddie really played in this. I admit to still trying to piece it all together for myself. This is coming from somebody who wants to blame Clinton ofcourse..
Banks are required to lend to bad neighborhoods and low income
people on a percentage basis of what it lends to credit worthy
people in good neighborhoods under the community advancement
laws that were revised in 1996.
The banks don't set the standards, Freddie and Fannie
sets the standards. All the banks do is underwrite the loans
and then sell them to freddie and fannie as long as they meet
freddie and fannies guidelines
Banks are required to lend to bad neighborhoods and low income
people on a percentage basis of what it lends to credit worthy
people in good neighborhoods under the community advancement
laws that were revised in 1996.
The banks don't set the standards, Freddie and Fannie
sets the standards. All the banks do is underwrite the loans
and then sell them to freddie and fannie as long as they meet
freddie and fannies guidelines
Got Link?
QUOTE (WhiskeyTango @ Sep 21 2008, 05:32 PM)
Does anybody have insight on the role fannie and freddie really played in this. I admit to still trying to piece it all together for myself. This is coming from somebody who wants to blame Clinton ofcourse..
Banks are required to lend to bad neighborhoods and low income
people on a percentage basis of what it lends to credit worthy
people in good neighborhoods under the community advancement
laws that were revised in 1996.
The banks don't set the standards, Freddie and Fannie
sets the standards. All the banks do is underwrite the loans
and then sell them to freddie and fannie as long as they meet
freddie and fannies guidelines
Banks are required to lend to bad neighborhoods and low income
people on a percentage basis of what it lends to credit worthy
people in good neighborhoods under the community advancement
laws that were revised in 1996.
The banks don't set the standards, Freddie and Fannie
sets the standards. All the banks do is underwrite the loans
and then sell them to freddie and fannie as long as they meet
freddie and fannies guidelines
Fannie Mae
http://en.wikipedia.org/wiki/Fannie_Mae
Freddie Mac
http://en.wikipedia.org/wiki/Freddie_Mac
Federal Home Loan Banks
...
On July 30, 2008, the Housing and Economic Recovery Act of 2008 (HERA) became law. The FHLBanks were referenced in this legislation, and the two changes were 1) the existing regulator (the Federal Housing Finance Board) was replaced with the Federal Housing Finance Agency, and 2) the Secretary of the Treasury was authorized to purchase FHLBank debt securities in any amount through December 31, 2009. After that time, the limit would return to the original $4 billion.
On September 7, 2008, the U.S. Treasury announced a new credit facility for the three housing government-sponsored enterprises. This enables the Secretary of the Treasury to purchase FHLBank debt in any amount subject to the pledging of secured loans as collateral. The authority for this facility expires on December 31, 2009.
...
http://en.wikipedia.org/wiki/Federal_Home_Loan_Banks
Government National Mortgage Association
http://en.wikipedia.org/wiki/Government_Na...age_Association
Greed.
That's all there was.
When rules came down that you could lend to stupid, no-account trash and that there would be no consequences for doing so, then why not?
If the government was going to back your piss-poor business decisions, then why not go for it?
What is the bail out now except the fulfillment of the government of its promises?
Thing you gotta ask is: "Government of whom and for whom?"
That's all there was.
When rules came down that you could lend to stupid, no-account trash and that there would be no consequences for doing so, then why not?
If the government was going to back your piss-poor business decisions, then why not go for it?
What is the bail out now except the fulfillment of the government of its promises?
Thing you gotta ask is: "Government of whom and for whom?"
QUOTE (WhiskeyTango @ Sep 21 2008, 08:32 PM)
Does anybody have insight on the role fannie and freddie really played in this. I admit to still trying to piece it all together for myself. This is coming from somebody who wants to blame Clinton ofcourse..
Banks are required to lend to bad neighborhoods and low income
people on a percentage basis of what it lends to credit worthy
people in good neighborhoods under the community advancement
laws that were revised in 1996.
The banks don't set the standards, Freddie and Fannie
sets the standards. All the banks do is underwrite the loans
and then sell them to freddie and fannie as long as they meet
freddie and fannies guidelines
Banks are required to lend to bad neighborhoods and low income
people on a percentage basis of what it lends to credit worthy
people in good neighborhoods under the community advancement
laws that were revised in 1996.
The banks don't set the standards, Freddie and Fannie
sets the standards. All the banks do is underwrite the loans
and then sell them to freddie and fannie as long as they meet
freddie and fannies guidelines
I think the biggest misunderstanding about Fannie and Freddie is that they issue mortgages.
No they do not.
Fannie and Freddie buy mortgages, freeing up banks to issue more mortgages.
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