Liberal Forum

Misty » 11 Dec 2016 4:52 pm » wrote: Clinton was not the POTUS between 2004 and 2006 when the majority of the bad loans were made.

Yeah. You said he 'played a small role' which is a bunch of ****.
I have posted the video many times of the speeches that Bush gave pushing lenders to give mortgages to people with 'no money for down payments' and 'bad credit histories' his words, not mine.
There are none so blind as those who will not see.

Are the Clintons the Real Housing-Crash Villains?

by LARRY KUDLOW & STEPHEN MOORE

....The seeds of the mortgage meltdown were planted during Bill Clinton’s presidency. Under his HUD secretary Andrew Cuomo, Community Reinvestment Act regulators gave banks higher ratings for home loans made in “credit-deprived” areas. Banks were effectively rewarded for throwing out sound underwriting standards and writing loans to those who were at high risk of defaulting. If banks didn’t comply with these rules, regulators reined in their ability to expand lending and deposits. These new HUD rules lowered down payments from the traditional 20 percent to 3 percent by 1995 and to 0 percent by 2000. What’s more, within Bill Clinton’s push to issue home loans to lower-income borrowers, Fannie Mae and Freddie Mac made it common practice to virtually end credit documentation, low credit scores were disregarded, and income and job histories were thrown aside. Under Bill Clinton, the phrase “subprime” became commonplace. What an understatement.
.....Next, the Clinton administration’s rules ordered taxpayer-backed Fannie and Freddie to expand their quotas of risky loans from 30 percent of portfolio to 50 percent as part of a big push to expand home ownership. Fannie and Freddie were securitizing these home loans and offering 100 percent taxpayer guarantees of repayment. So now taxpayers were on the hook for these risky, low-down-payment loans.
Read more at: http://www.nationalreview.com/article/4 ... h-villains