Q&A: Is this exactly where the SubPrime Lending Mess got it is start (or boost?) see hyperlink?

Query by Morey000: Is this exactly where the SubPrime Lending Mess got it’s start off (or enhance?) see hyperlink?

Or is it less complicated just to blame it all on the democrats?
I have to admit, I’m learning more about this mess thanks to the responses right here. Even though the community reinvestment act seems like 1 of the culprits (beneath Andrew Cuomo a dem), the Bush administration re-ratified every thing. So, there’s enough blame to go around both parties.

Ideal answer:

Answer by Charlotte

It is less difficult to spot blame correct were it belongs, on the Democrates

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Graduate paper completed on existing mortgage mess? …

concern by Tim6298 : Creating Graduate paper the existing mortgage mess … and the scope of this paper is how the government got us into trouble, has any individual a link or speech Pres. Clinton and Pres. Bush gave emphasizing the property, it could mean that measures have been taken to boost so plan on focusing on how the decrease requirements that have been defined for far more qualified individuals to purchase homes began this crise.Woodberry – excatly what is the link Best answer: ?

response mattapan26
There is an excellent book by Ken Lorie, Mortgage Backed Securities, which defines the process of mounting mortgage pooling and securitization REMICs. If you are seeking for greater education, you want to realize the method. Then you have to look HUD regulations, notices and choices say in the last 15 years. Presidents speech are indicative of anything essential and possibly cost you when you have to defend your thesis, if that is all you have. Excellent luck.

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Since The Financial Mess Was Produced By Obama And Other Democrat Politicians, Need to They Give Up..?

Query by a bush household member: Considering that The Financial Mess Was Created By Obama And Other Democrat Politicians, Must They Give Up..?
their salaries, and function for cost-free? Like the way they want automakers’ CEOs to do?
1) The final Democrat president designed the housing bubble which is now collapsing. http://www.frbsf.org/publications/economics/letter/2006/el2006-30a.gif (non biased U.S. Federal Reserve web site)
2) Democrats triggered the housing bubble to collapse by lowering customer confidence (adverse campaigning) and by encouraging home builders to overbuild by employing illegal immgrant labor to generate 100% to 400% earnings. ( Democrats blocked huge efforts created by President Bush to fine employers of illegal immigrants.)
3) Clinton ignored a government report that stated bank derivatives had been dangerous to the economy. He also threatened to fine banks that had been not giving loans to poor individuals.
4) Clinton, ACORN, OBama, and Rubin pushed for changing laws to offer a lot more risky loans.
6) Obama and other Democrats voted for weak border handle which decreases wages, increases joblessness, lowers the normal of living, etc.
7) Democrats blocked President Bush’s GSE reform (Fannie Mae and Freddie Mac reform) by filibustering in congress..
8) $ 700 billion was spent to repair Clinton’s bank derivatives issue.
9) Democrats elevated our dependence on foreign oil. That increases gas bills, hurt the economy, decreased national security, and is providing other countries hundreds of billions of dollars yearly. Also, it als financially aids numerous countries which do not have our best interests in mind.
Because 2001, President Bush warned of the issue and put forward plans to fix Fannie Mae and Freddie Mac:
In 2003, “Spurred by worries that Fannie and Freddie had been cooking their books and taking as well many risks, Treasury Secretary John Snow proposed putting the businesses beneath Treasury oversight with strict controls more than threat and capital reserves. The NYT labeled the proposal “the most substantial regulatory overhaul in the housing finance business because the savings and loan crisis a decade ago””
In 1997 Clinton “actively sponsored ” risky home loans :
“”…speedy development in affordable-loan programs and subprime lending…”
“The development in these [specific loan] programs has been actively sponsored by the Clinton administration ”
“The presently robust housing industry is due in part to the initiation of a wide assortment of cost-effective home-loan programs. These programs are intended to advantage low-earnings and minority households and neighborhoods by way of much more versatile underwriting policies. These policies consist of low-downpayment specifications, larger acceptable ratios of debt payment to revenue, the use of option credit history information such as records of payments for rent and utilities, versatile employment standards, and decreased cash reserve needs. The development in these programs has been actively sponsored by the *** Clinton administration *** in a concerted effort to raise home-ownership rates.”
Mortgage Banking [News] – Aug 1, 1997
One particular of Clinton’s Freddie Mac changes:
“Freddie Mac, one particular of the primary government-sponsored enterprises involved in the obtain of mortgages, not too long ago announced plans to enter the secondary marketplace in subprime loans by purchasing substantial numbers of “A minus” subprime mortgages by 1998 and the higher-threat “B and C” loans by 1999.(20) ”

1 of Clinton’s modifications to foreclosure insurance coverage ( that protected banks ).
“On June 6, 1996, President Clinton announced that he had directed FHA to decrease the up-front mortgage insurance premium (UFMIP) for 1st-time homebuyers who obtain housing counseling”
Democrats’ response to President Bush’s reform of Fannie Mae And Freddie Mac.
“These two entities—Fannie Mae and Freddie Mac—are not facing any kind of monetary crisis,” mentioned Representative Barney Frank of Massachusetts, the ranking Democrat on the Economic Services Committee. “The much more men and women exaggerate these troubles, the much more stress there is on these companies, the much less we will see in terms of affordable housing.”
Democrat Barney Frank: In April 2004, Fannie announced a multibillion-dollar financial “misstatement” of its own. Mr. Frank was back for the defense. Fannie and Freddie posed no danger to taxpayers, [ Barney Frank ] said, adding that “I consider Wall Street will get over it” if the two collapsed. Yes, they are undoubtedly “over it” on the Street now that Uncle Sam is guaranteeing their Fannie paper, and even Fannie’s subordinated debt.
[ Democrat Barney] “Frank was publicly arguing for an increase in the size of their combined $ 1.4 trillion portfolios right up to the day they had been bailed out. Even now, following he’s been proven wrong about a taxpayer guarantee, he opposes Treasury’s planned reduction in the size of the portfolios starting in 2010, according to a quote attributed to him in this newspaper last week. “Great luck on that,” he reportedly said. Mr. Frank’s spokeswoman hung up the phone when we sought confirmation Tuesday” … “For years, Mr. Frank and other pals of Fan and Fred opposed not only bills written to limit the size of their portfolios”
Wall Street Journal.

Ideal answer:

Answer by how is babby formed
Do they want the CEOs to function for cost-free or do they want them to give up their private jets?

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Seeing as how Republicans got us in this mess, should they be taxed at a greater rate to spend it off?

Question by Who’s Your Daddy Now: Seeing as how Republicans got us in this mess, ought to they be taxed at a higher price to pay it off?

Best answer:

Answer by Philip McCrevice

Dems had been in handle of Congress when the economy tanked.

In fact, when Republicans had been in charge of Congress, we were cruising financially. Despite the loans to the dem voter base that ought to never ever have been allowed.

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How is the Community Reinvestment Act to blame for this mess?

Question by BrianthePigEatingInfidel: How is the Community Reinvestment Act to blame for this mess?
In 1995, as a result of interest from President Bill Clinton’s administration, the regulations for the CRA were strengthened.

These revisions were credited with substantially increasing the number and aggregate amount of loans to low- and moderate-income borrowers for home loans. These changes were very controversial and as a result, the regulators agreed to revisit the rule after it had been fully implemented for seven years. Thus in 2002, the regulators opened up the regulation for review and potential revision.

Part of the increase in home loans was due to the emergence of lenders, like Countrywide, that do not reduce loan risk with savings deposits like traditional banks do, using the subprime authorization that was in the CRA. This is known as the secondary market for mortgage loans. The revisions allowed the securitization of CRA loans containing subprime mortgages. The first public securitization of CRA loans started in 1997 by Bear Stearns. The number of CRA mortgage loans increased by 39 percent between 1993 and 1998, while other loans increased by only 17 percent.

Other rule changes gave Fannie and Freddie extraordinary leverage, allowing them to hold just 2.5% of capital to back their investments, vs. 10% for banks. By 2007, Fannie and Freddie owned or guaranteed nearly half of the $ 12 trillion U.S. mortgage market.

Now, since the CRA is entirely a creation of the Democratic party and its leftist elements, how can anyone pin the blame on the Republicans, who actually tried to reform it in 2003?
Yes, Joan. But unlike the countries that you have wet dreams about, the ones with their epaulet-laden “el presidentes for life,” being president of the United States accords no such dictatorial powers. And get this, EVEN IF his own party is in power, he still doesn’t have control unless his party has a 2/3 supermajority. And at no time since Gingrich delivered the house to the republicans did they ever have a supermajority.
Deb M: Interesting you say that dems in power now can’t get anything done because republicans are blocking it, but then ask why republicans couldn’t pass reforms in 2002-2003. Funny you should apply such a double standard without even wincing.

Fact is, the republicans TRIED to reform it. It was blocked by the two biggest recipients of Fannie Mae contributions, Barney Fwank and Chuck Schumer.

Just because you have a simple majority does not mean you can do whatever you want.
gabriel bell: There was no bill that brought the changes in 1995. The original act in 1977 gave broad regulatory powers to three agencies: Federal Deposit Insurance Corporation, the Office of Thrift Supervision, and the Office of the Comptroller of the Currency. They made the regulatory changes within the power they already had under CRA 1977. It did not require congress to approve.

Best answer:

Answer by Joan S
Yeah. That must be it. Never mind that Bush has been in office for nearly 8 years. Not like he had any opportunity to have an impact?

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