Wall Street and the banking industry have been floating a big huge stinky pile of fertilizer about how the reason there are all these sub-prime mortgages that are failing is because Congress (read here–that GAY GUY) forced them, forced them, I tell you, to lend mortgage money to uncreditworthy dark skinned people and processed them through Fannie and Freddies.
As the economy worsens and Election Day approaches, a conservative campaign that blames the global financial crisis on a government push to make housing more affordable to lower-class Americans has taken off on talk radio and e-mail.
Conservative critics claim that the Clinton administration pushed Fannie Mae and Freddie Mac to make home ownership more available to riskier borrowers with little concern for their ability to pay the mortgages
Uh, well, erm, not really. Turns out the the really shitty subprime mortgages were done through predatory lending by private insitutions.
Federal housing data reveal that the charges aren’t true, and that the private sector, not the government or government-backed companies, was behind the soaring subprime lending at the core of the crisis.
Federal Reserve Board data show that:
_ More than 84 percent of the subprime mortgages in 2006 were issued by private lending institutions.
_ Private firms made nearly 83 percent of the subprime loans to low- and moderate-income borrowers that year.
_ Only one of the top 25 subprime lenders in 2006 was directly subject to the housing law that’s being lambasted by conservative critics.
The "turmoil in financial markets clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007," the President’s Working Group on Financial Markets reported Friday.
Yep, bunch of mortgage brokers got their fee. the predatory lenders got their "originatin fee" and then sold the crap loans. It was all a scam my darlin’s.
It’s not often that I beg for spotlighting, but this story needs to get wider attention. I would LOVE to see every network reporting on this and you guys can make that happen.