Obama Administration Renews push for Subprime Loans for Minorities.

[Fox McCloud]

Let's push similar legislation that helped get banks into the mess they were in originally.

Nothing like a good game of prisoner's dilemma to make everyone lose.

 

[bobbyw24]

The True Story of the Foreclosure Crisis

By Peter J. Wallison from the May 2011 issue

As many readers of The American Spectator will know, I was a member of the Financial Crisis Inquiry Commission, a 10-member body appointed by Congress to investigate the causes of the financial crisis of 2008. The Commission issued its report in late January 2011, with a majority concluding that the crisis could have been avoided if the private sector had not taken so many risks and government regulators had not been asleep at the switch. I dissented from the majority's view, arguing in my dissent that the financial crisis would not have occurred if government housing policies had not fostered the creation of an unprecedented number of subprime and otherwise risky loans immediately before the financial crisis began.

After the majority's report was published, many people lamented that it was not possible to achieve a bipartisan agreement even on the facts. But the way the Commission was organized and run made this impossible. One glaring example will illustrate the problem. In March 2010, Edward Pinto, a resident fellow (and my colleague) at the American Enterprise Institute who had served as chief credit officer at Fannie Mae, sent the Commission a 70-page, fully sourced memorandum on the number of subprime and other high-risk mortgages in the financial system in 2008. Pinto's research showed that he had found more than 25 million such mortgages (his later work showed that there were approximately 27 million). Since there are about 55 million mortgages in the U.S., Pinto's research indicated that, as the financial crisis began, half of all U.S. mortgages were of inferior quality and liable to default when housing prices were no longer rising. In August, Pinto supplemented his initial research with a paper documenting the efforts of the Department of Housing and Urban Development (HUD), over two decades and through two administrations, to increase home ownership by reducing mortgage-underwriting standards.

http://spectator.org/archives/2011/05/13/the-true-story-of-the-financia

 

[bobbyw24]

From Fannie Mae's website

So if you are white or some color he doesn't like, like say Asians. Then you can't partake of this inherently racist program? More liberal racial hatred oriented politics.

Marketplace - Our Business

The current housing market crisis is having a disproportionate effect on communities of color. Recent estimates indicate that minorities, including immigrants, will account for 68 percent of household growth over the period 2005-2015. As we work aggressively to save families from foreclosure, we also need to prepare for future homeowners and renters by understanding their housing and credit needs and enabling our customers and partners to meet those needs. The Office of Diversity and Inclusion is supporting the efforts of Fannie Mae's business units by:

Identifying opportunities to align with corporate efforts aimed at foreclosure prevention and lending in communities of color

Developing initiatives to support increased diversity in the financial services industry through internships, scholarships, and other targeted programs to bring more people with more diverse backgrounds into our industry

Advancing our corporate supplier diversity efforts to ensure that certified and qualified diverse suppliers are provided the opportunity to do business with Fannie Mae

For more details, please contact the Office of Diversity & Inclusion.

http://www.fanniemae.com/careers/diversity/index.jhtml?p=Diversity & Inclusion