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Mike

Well-known member
at the DATE on this before you read it!!!!!!!!!!!!!!!!!!! :lol: :lol: :lol:
_________________________________________________________
New York Times
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 addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans.

''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.''

Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market.

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.''

Under Fannie Mae's pilot program, consumers who qualify can secure a mortgage with an interest rate one percentage point above that of a conventional, 30-year fixed rate mortgage of less than $240,000 -- a rate that currently averages about 7.76 per cent. If the borrower makes his or her monthly payments on time for two years, the one percentage point premium is dropped.

Fannie Mae, the nation's biggest underwriter of home mortgages, does not lend money directly to consumers. Instead, it purchases loans that banks make on what is called the secondary market. By expanding the type of loans that it will buy, Fannie Mae is hoping to spur banks to make more loans to people with less-than-stellar credit ratings.

Fannie Mae officials stress that the new mortgages will be extended to all potential borrowers who can qualify for a mortgage. But they add that the move is intended in part to increase the number of minority and low income home owners who tend to have worse credit ratings than non-Hispanic whites.

Home ownership has, in fact, exploded among minorities during the economic boom of the 1990's. The number of mortgages extended to Hispanic applicants jumped by 87.2 per cent from 1993 to 1998, according to Harvard University's Joint Center for Housing Studies. During that same period the number of African Americans who got mortgages to buy a home increased by 71.9 per cent and the number of Asian Americans by 46.3 per cent.
 

Mike

Well-known member
jigs said:
Mike, that is interesting, but remember, it is always Bushes Fault...

Bush warned them, McCain warned them but Barney kept right on pushing.

What a bunch of idiots we have posting here! :lol: :lol: :lol:
 
A

Anonymous

Guest
Home ownership has, in fact, exploded among minorities during the economic boom of the 1990's. The number of mortgages extended to Hispanic applicants jumped by 87.2 per cent from 1993 to 1998, according to Harvard University's Joint Center for Housing Studies. During that same period the number of African Americans who got mortgages to buy a home increased by 71.9 per cent and the number of Asian Americans by 46.3 per cent.

So you're saying that after paying on their mortgages for 10-15 years all blacks and hispanics stopped paying on and forfeited their houses- so this caused the economic crisis :???:

OY VEY :roll:

Couldn't be- as Congressman Bilbray and Tancredo have accused Bush-- his order to quit enforcing the law requiring lenders to check for legal status and background/credit info- to speed up more home sales ?
 

Mike

Well-known member
Oldtimer said:
Home ownership has, in fact, exploded among minorities during the economic boom of the 1990's. The number of mortgages extended to Hispanic applicants jumped by 87.2 per cent from 1993 to 1998, according to Harvard University's Joint Center for Housing Studies. During that same period the number of African Americans who got mortgages to buy a home increased by 71.9 per cent and the number of Asian Americans by 46.3 per cent.

So you're saying that after paying on their mortgages for 10-15 years all blacks and hispanics stopped paying on and forfeited their houses- so this caused the economic crisis :???:

OY VEY :roll:

Couldn't be- as Congressman Bilbray and Tancredo have accused Bush-- his order to quit enforcing the law requiring lenders to check for legal status and background/credit info- to speed up more home sales ?

Boy, you're more stupid than I had ever dreamed. :roll:

This ball has been rolling for years and has gained intensity. Bush never told anyone to quit enforcing the law. Show it if you can bring anything except allegations!!

The loosening of credit requirements was a Dem perpetuated fiasco and no one could stop it!!!! It started with Carter and look where it got us. :roll:
 
A

Anonymous

Guest
Mike said:
Oldtimer said:
Home ownership has, in fact, exploded among minorities during the economic boom of the 1990's. The number of mortgages extended to Hispanic applicants jumped by 87.2 per cent from 1993 to 1998, according to Harvard University's Joint Center for Housing Studies. During that same period the number of African Americans who got mortgages to buy a home increased by 71.9 per cent and the number of Asian Americans by 46.3 per cent.

So you're saying that after paying on their mortgages for 10-15 years all blacks and hispanics stopped paying on and forfeited their houses- so this caused the economic crisis :???:

OY VEY :roll:

Couldn't be- as Congressman Bilbray and Tancredo have accused Bush-- his order to quit enforcing the law requiring lenders to check for legal status and background/credit info- to speed up more home sales ?

Boy, you're more stupid than I had ever dreamed. :roll:

This ball has been rolling for years and has gained intensity. Bush never told anyone to quit enforcing the law. Show it if you can bring anything except allegations!!

The loosening of credit requirements was a Dem perpetuated fiasco and no one could stop it!!!! It started with Carter and look where it got us. :roll:


Carter left in 1981- those mortgages were paid off years ago.....

So you say it worked for 30 years- but then all of a sudden- Viola- the system quit working-all blacks and latinos quit paying their mortgage bill- and the economy collapsed because of it... :???:

Interesting that it waited til GW was President-but he didn't have anything to do with it :roll: But sadly- we know Repubs no longer accept responsibility for anything....

You sure it wasn't Trumans fault... :???: :wink: :lol: :lol: :p

The Buck Stops Here
Harry S Truman
 

hypocritexposer

Well-known member
This ball has been rolling for years and has gained intensity. Bush never told anyone to quit enforcing the law. Show it if you can bring anything except allegations!!

What do the 3 branches of overnment do in your country?



So you say it worked for 30 years- but then all of a sudden- Viola- the system quit working-all blacks and latinos quit paying their mortgage bill- and the economy collapsed because of it... Say what?

with those type of mortgages, you don't pay them off in 30 years!
 

aplusmnt

Well-known member
Come on OT you are smarter than this.

A big problem with making bad loans in years past and present is those people do not prepare for rainy days. They do not even factor in normal inflation let alone abnormal.

They can hold on for a few years but then as things get tighter they loose. Not to mention variable inflation rates that take usually at least three years to change and some times 6 before they are hit twice with increases in payments.

Point is bad lending practices started long ago and where encouraged by Clinton. They were warned by Bush and McCain but encouraged by Clinton and Frank and Dodd.
 

Steve

Well-known member
Carter left in 1981- those mortgages were paid off years ago.....

and how many were written since, with the standards getting lower each year?

even with a 1/2% increase in subprime loans written each year with lax standards it would take a few years for it to be noticable and a decade or two to get bad, and by say 2005 it would be a disaster.. :wink:
 

Sandhusker

Well-known member
Oldtimer said:
Mike said:
Oldtimer said:
So you're saying that after paying on their mortgages for 10-15 years all blacks and hispanics stopped paying on and forfeited their houses- so this caused the economic crisis :???:

OY VEY :roll:

Couldn't be- as Congressman Bilbray and Tancredo have accused Bush-- his order to quit enforcing the law requiring lenders to check for legal status and background/credit info- to speed up more home sales ?

Boy, you're more stupid than I had ever dreamed. :roll:

This ball has been rolling for years and has gained intensity. Bush never told anyone to quit enforcing the law. Show it if you can bring anything except allegations!!

The loosening of credit requirements was a Dem perpetuated fiasco and no one could stop it!!!! It started with Carter and look where it got us. :roll:


Carter left in 1981- those mortgages were paid off years ago.....

So you say it worked for 30 years- but then all of a sudden- Viola- the system quit working-all blacks and latinos quit paying their mortgage bill- and the economy collapsed because of it... :???:

Interesting that it waited til GW was President-but he didn't have anything to do with it :roll: But sadly- we know Repubs no longer accept responsibility for anything....

You sure it wasn't Trumans fault... :???: :wink: :lol: :lol: :p

The Buck Stops Here
Harry S Truman

It worked until RE prices could not be artifically pushed any higher - the bubble burst.
 
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