Upcoming Foreclosures

Why did republicans give everybody a free house, then bet that they would not pay the mortgage?

In 2002, why did Bush ask his fannie mae appointees to "make 440 BILLION in subprime loans to minorities"? Here is the video...go to the 4 minute mark to hear him say it. http://www.youtube.com/watch?v=kNqQx7sjoS8 Here is the offical white house text of that speech he gave in atlanta on june 17, 2002. http://georgewbush-whitehouse.archives.gov/news/releases/2002/06/20020617-2.html Here is the offical white house fact sheet: http://georgewbush-whitehouse.archives.gov/news/releases/2002/06/20020617.html Bush said "...That's why I've challenged the industry leaders all across the country to get after it for this goal, to stay focused, to make sure that we achieve a more secure America, by achieving the goal of 5.5 million new minority home owners. I call it America's home ownership challenge. And let me talk about some of the progress which we have made to date, as an example for others to follow. First of all, government sponsored corporations that help create our mortgage system -- I introduced two of the leaders here today -- they call those people Fannie May and Freddie Mac, as well as the federal home loan banks, will increase their commitment to minority markets by more than $440 billion. (Applause.) I want to thank Leland and Franklin for that commitment. It's a commitment that conforms to their charters, as well, and also conforms to their hearts." (Please note that bush appoints Leland and Franklin to their jobs at fannie mae and freddie mac so when he asks for 440 BILLION that is basically a presidential order) Also note: The govt can not force a bank to make a bad loan. And surely, an ALL REPUBLICAN GOVT would not force a bank to make a bad loan. In 2002, republicans controlled both congress and the white house. You can't blame this on democrats and barney frank. In fact, bush's top 2 banking appointees have stated that the CRA - community reinvestment act - has had absoutely nothing to do with the banking crisis. Bush appointee Federal Reserve Chairman Ben Bernanke said "Experience runs counter to the charge that CRA was at the root of, or otherwise contributed in any substantive way to, the current mortgage difficulties." In a November 25, 2008, letter, Federal Reserve chairman Ben Bernanke stated: "Our own experience with CRA over more than 30 years and recent analysis of available data, including data on subprime loan performance, runs counter to the charge that CRA was at the root of, or otherwise contributed in any substantive way to, the current mortgage difficulties." Most subprime mortgages not issued by institutions under CRA. In a paper published on the website of the Federal Reserve Bank of San Francisco, Michigan law professor Michael Barr stated that as of 2005: "Only 25 percent of subprime loans were made by banks and thrifts, and the Federal Reserve reports that only six percent of subprime loans were CRA-eligible." Similarly, a 2008 study by a law firm specializing in CRA compliance estimated that in the 15 most populous metropolitan areas, 84.3 percent of subprime loans in 2006 were made by financial institutions not governed by the CRA. Bush appointee FDIC chairwoman Shelia Blair said in the following speech: Remarks by FDIC Chairman Sheila Bair to The New America Foundation conference: "Did Low-income Homeownership Go Too Far?": Washington, DC December 17, 2008 Good morning and thank you for inviting me to speak. What I'd like to do today is bury two myths that have been circulating lately. The first myth is that the Community Reinvestment Act caused the financial crisis. And the second myth is that working with troubled homeowners to reduce foreclosures lacks urgency and may be akin to a fool's errand. CRA as a scapegoat I think we can agree that a complex interplay of risky behaviors by lenders, borrowers, and investors led to the current financial storm. To be sure, there's plenty of blame to go around. However, I want to give you my verdict on CRA: NOT guilty. Point of fact: Only about one-in-four higher-priced first mortgage loans were made by CRA-covered banks during the hey-day years of subprime mortgage lending (2004-2006). The rest were made by private independent mortgage companies and large bank affiliates not covered by CRA rules. You've heard the line of attack: The government told banks they had to make loans to people who were bad credit risks, and who could not afford to repay, just to prove that they were making loans to low- and moderate-income people. Let me ask you: where in the CRA does it say: make loans to people who can't afford to repay? No-where! And the fact is, the lending practices that are causing problems today were driven by a desire for market share and revenue growth ... pure and simple. CRA isn't perfect. But it has stayed around more than 30 years because it works. It e

Public Comments

1. So he just proved that minorities cannot be trusted. Thank you for making the point. Are you in the KKK?
2. False. Democrats did. You are on a roll today
3. And who began a lawsuit to force the lending of monies to those without the ability to repay? Acorn, with Obama at the helm. And this began even BEFORE Bush was president.
4. Kinda lengthy question, and not worth my time. I'm so glad you'll be going back to the fourth grade tomorrow (Monday.) At least it will get you and your dumb questions off Y/A for awhile.
5. When did Barney Frank and Christopher Dodd switch parties?
6. Both Bush and McCain tried to warn the Democrats in congress about subprime loans. They were ignored. And now the Democrats try to blame it on Republicans. Typical.
7. you are still spreading lies or half truths just like a typical socialist I suggest you research the Democrat leadership going back to the Carter Administration that created this economic disaster. The fact is that the roots of this economic crisis go back to the Clinton and Carter Administrations , the radical group ACORN, and Rep. Barney Frank (D-MA) and Senator Christopher Dodd (D-CT).
8. I do not think that many strong republicans are inclined to GIVE anything; where are these facts coming from? (Fannie Mae has quite a "liberal" reputation)
9. Wow don't you get scared at how ignorant the people are here half of them here think the senate was controlled by the democrats during most of bushes presidency. Then you present them with the facts and they just deny it and say its democrats who are to blame. They also blame Obama for running up huge deficits even though he did increase the budget to keep us from going into a depression which the republicans caused. It would be like loaning somebody your car which they crash and then blame you for not taking care of it properly. They also confuse the yearly deficit with the accumulated deficit. Are they still teaching economics in school at all.