polarmystery
Diamond Member
I just got this email from a friend. What do you guys think about it? I think it's interesting if that is indeed true.
"Since there is so much talk about this buyout over the WNDA airwaves I thought I would share this article from September 30, 1999 out of the New York Times, a generally more left wing paper. So many people want to blame President Bush for the short coming of the economy and housing market instead of the mortgage lenders and citizens who took on mortgages outside their income. This article was written before he was in office and while Clinton was in office. Below are a couple of paragraphs out of that article that I would like you to read. If you want to read the whole article, and I suggest you do, it is here http://query.nytimes.com/gst/f...ec=&spon=&pagewanted=2. If you read the whole article you will see I have taken nothing out of context. This is pretty prophetic and scary if you ask me.
Aaron
Fannie Mae Eases Credit to Aid Mortgage Lending
By Steven A. Holmes
Published: September 30, 1999
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.
In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.
''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''
"
"Since there is so much talk about this buyout over the WNDA airwaves I thought I would share this article from September 30, 1999 out of the New York Times, a generally more left wing paper. So many people want to blame President Bush for the short coming of the economy and housing market instead of the mortgage lenders and citizens who took on mortgages outside their income. This article was written before he was in office and while Clinton was in office. Below are a couple of paragraphs out of that article that I would like you to read. If you want to read the whole article, and I suggest you do, it is here http://query.nytimes.com/gst/f...ec=&spon=&pagewanted=2. If you read the whole article you will see I have taken nothing out of context. This is pretty prophetic and scary if you ask me.
Aaron
Fannie Mae Eases Credit to Aid Mortgage Lending
By Steven A. Holmes
Published: September 30, 1999
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.
In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.
''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''
"
