Originally posted by: Vic
Originally posted by: SecPro
Originally posted by: Vic
Originally posted by: Atreus21
Well why did the subprime market crash?
And none of them were ever forced to make a bad loan. Not a single one. Quite the opposite, you couldn't get them not to do one.
Look, I've worked mortgage for 15 years. In my professional opinion, the notion that Fannie/Freddie or the CRA caused the housing bust is so ridiculous as to be laughable. Laughable.
What really happened is that as long as home prices kept going up at a record pace, no one could lose. So the attitude became, Why not do the deal? Unfortunately, home prices couldn't keep going up forever.
First no one in this forum has debunked shit about the meltdown. Nothing. Secondly, you're right, no one held an actual gun to anyones head and forced them to make a loan. But since you're a self procalimed expert on the mortgage industry why don't yopu talk in detail about the CRA, the CRA ranking system and it's importance to mortgage/loan providers. If you can do that accurately and intelligently, which i doubt, please tell us again how no one was "forcing anyone to make bad loans." What a frigging joke.
There's more than one reason for the current situation but to dismiss F and F as not having a part or especially the CRA having a major part is just pure, unadulterated ignorance.
First, there are dozens of threads where this has been debunked (now including this one, see my links above), more than one of them created by me. The search function works. Use it.
Secondly, why don't you tell me because you obviously don't know jack shit about the issue. How about you tell me what the differences were between a Fannie Mae "subprime" loan and the subprime loans offered by independent mortgage lenders like Accredited, New Century, or Argent? Terms, underwriting criteria, etc. I bet you don't even have a clue.
How about the fact that only ONE of the top 25 subprime mortgage lenders (Wells Fargo) was even bound to the CRA? While the largest and by far the loosest (Countrywide) was not bound at all. Is that how you're telling us that these lenders were forced to make these bad loans?
Finally, I did not say that F&F or the CRA did not play a part, that's your pure unadulterated ignorance, fuckwad. Obviously a crisis of this magnitude has a large number of causes. How about you wake up and realize that your partisan rhetoric has you believing that the source of the best loans out there was the biggest cause of the collapse? Ask yourself, does what you're arguing really make any sense? At all?
edit: Oops, I forgot to mention that the Clinton changes to CRA were something that Fannie/Freddie and banks and lenders lobbied hard for. Then the GLBA, which they also lobbied for, gave them the opportunity to sell more of these deals up to Wall Street, etc. and make even more. They weren't forced, they desperately wanted to be able to do these loans. Because as long as home values kept going up, they couldn't lose.