Obama Administration Renews push for Subprime Loans for Minorities.

bobbyw24

bobbyw24

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NOTE: I borrowed the title from Prof. Carol Swain:

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Please "Like" Professor Swain on Facebook--she is as unique as she is courageous

https://www.facebook.com/pages/Professor-Carol-M-Swain-PhD/114175201941513

In the wake of the subprime implosion, the Obama Administration has stepped up its scrutiny of disadvantaged neighborhoods' credit access

By Clea Benson

Community activists in St. Louis became concerned a couple of years ago that local banks weren't offering credit to the city's poor and African American residents. So they formed a group called the St. Louis Equal Housing and Community Reinvestment Alliance and began writing complaint letters to federal regulators.

Apparently, someone in Washington took notice. The Federal Reserve has cited one of the group's targets, Midwest BankCentre, a small bank that has been operating in St. Louis's predominantly white, middle-class suburbs for over a century, for failing to issue home mortgages or open branches in disadvantaged areas. Although executives at the bank say they don't discriminate, Midwest BankCentre's latest annual report says it is in the process of negotiating a settlement with the U.S. Justice Dept. over its lending practices.

http://www.businessweek.com/magazine/content/11_20/b4228031594062.htm
 
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Ever have one of those moments where you stop and wonder if everything is real or if life is fake like your Truman Burbank?
 
Just another shakedown by the Justice Department. Looks like the government-banking cartel is starting to eat itself.
 
Glad to see that Drudge put this up. As a bankrutpcy attorney who helps people save their homes from banks, I am disgusted but certainly not shocked by this. Pander to the base baby. What's next--pushing Amensty for the Latino vote? Oh that's right--that is day old news
 
Foreclosures are Destroying the Black Middle Class

bobbyw24 said:
Glad to see that Drudge put this up. As a bankrutpcy attorney who helps people save their homes from banks, I am disgusted but certainly not shocked by this. Pander to the base baby. What's next--pushing Amensty for the Latino vote? Oh that's right--that is day old news
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he American middle class has been hammered over the last several decades. The black middle class has suffered to an even greater degree. But the single most crippling blow has been the real estate and foreclosure crisis. It has stripped black families of more wealth than any single event in U.S. history. Due entirely to subprime loans, black borrowers are expected to lose between $71 billion and $92 billion.

To fully understand why the foreclosure crisis has so disproportionately affected working- and middle-class blacks, it is important to provide a little background. Many of these American families watched on the sidelines as everyone and their dog seemed to jump into the real estate game. The communities they lived in were changing, gentrifying, and many blacks unable to purchase homes were forced out as new homeowners moved in. They were fed daily on the benefits of home ownership. Their communities, churches and social networks were inundated by smooth-talking but shady fly-by-night brokers. With a home, they believed, came stability, wealth and good schools for their children. Home ownership, which accounts for upwards of 80 percent of the average American family’s wealth, was the basis of permanent membership into the American middle class. They were primed to fall for the American Dream con job.

http://brechtforum.org/foreclosures-are-destroying-black-middle-class
 
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Fannie and Freddie said we need 70% home ownership rate--particularly for poorer minorities. Who cares if they cannot afford the homes--the Banks make money off the loans when they sell them to Fannie and Freddie, whom the taxpayers back.
 
bobbyw24 said:
Fannie and Freddie said we need 70% home ownership rate--particularly for poorer minorities. Who cares if they cannot afford the homes--the Banks make money off the loans when they sell them to Fannie and Freddie, whom the taxpayers back.
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Fannie and Freddie only originate prime high credit quality loans with 20% down payments. The subprime originations were done by other private companies.
 
This is only good news if it leads to another bubble that inflates and pops before the 2012 elections. Hopefully, these policies will be reckless and fast enough to accomplish that.

On the other hand, a false boom that lasts past election day will hurt Ron's 2012 chances, which is undoubtedly what they are trying to accomplish here.
 
ababba said:
Fannie and Freddie only originate prime high credit quality loans with 20% down payments. The subprime originations were done by other private companies.
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Fannie and Freddie do not originate loans--they are on the secondary market

Fannie Mae and Freddie Mac are two government sponsored enterprises that created, and remain highly involved in, the secondary market for mortgage-backed securities. Before the subprime mortgage crisis, they owned or guaranteed $1.4 trillion, or 40%, of all U.S. mortgages. They only held $168 billion in subprime mortgages -- but it was enough to capsize the two. Find out how the two agencies supported the secondary market, which helped American families realize the dream of homeownership, and how that turned into the nightmare of the subprime mortgage crisis.

http://useconomy.about.com/od/grossdomesticproduct/tp/Subprime_Mortgages_FNMA.htm

More at

http://www.cityresearch.com/pres/smm.pdf
 
bobbyw24 said:
Fannie and Freddie do not originate loans--they are on the secondary market

Fannie Mae and Freddie Mac are two government sponsored enterprises that created, and remain highly involved in, the secondary market for mortgage-backed securities. Before the subprime mortgage crisis, they owned or guaranteed $1.4 trillion, or 40%, of all U.S. mortgages. They only held $168 billion in subprime mortgages -- but it was enough to capsize the two. Find out how the two agencies supported the secondary market, which helped American families realize the dream of homeownership, and how that turned into the nightmare of the subprime mortgage crisis.

http://useconomy.about.com/od/grossdomesticproduct/tp/Subprime_Mortgages_FNMA.htm

More at

http://www.cityresearch.com/pres/smm.pdf
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They create mortgage backed securities by pooling prime high quality loans into pools. This is more than just being involved in the secondary market. They have never created an MBS out of subprime mortgages. They bought some subprime on the secondary market, but that was only at the very end of the crisis. They started around 2006-2007.

The point is that the supbrime lending credit expansion didn't happen because of the GSE's, the GSE's lost business because of subprime because their MBS only included high quality mortgages.
 
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ababba said:
The point is that the supbrime lending credit expansion didn't happen because of the GSE's, the GSE's lost business because of subprime because their MBS only included high quality mortgages.
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Agreed
 
buck000 said:
From that link:



Lenders discriminating against the poor. Interesting.

"Hello, can you afford this loan?"

"Not really, I'm poor."

"Sorry, then, no loan for you."

"How DARE you discriminate against me!"
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in the corporate states of america, credit is a RIGHT!

doncha kno :\
 
Someone queue the Bwaney Fwank Banking Queen video. "SCREECH"

These clowns in Washington DC/State capitals are trying their best to artificially inflate those entities/assets that give government the largest sums in tax revenue.

They have pushed the currency valuation down (Inflation Tax) to the sweet spot where government maximizes tax revenues without nuking the economy/people. Now, since home values continue to drop... how else to pump up the bubble and inflate housing by cheap and easy mortgages to those that can't afford them. If they can afford them, guess who's backing these plans... once again, the taxpayers on the hook.

How many Billions did the GSEs lose in Q1 2011 again? Yeah, just what I thought... "TALF for EVERYBODY!"
 
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.
 
C'mon, guys. This lantern holder just wants re-elected.

1) Give amnesty to illegals (if they agree to register to vote).

2) Give the po' folks mortgages (guaranteed by the taxed income of those still working, who would never vote for O'banana).

3) Stand tall as "the guy who got Bin Laden" for the flag wavers still under the ether.

4) Perfectly timed QE3 and its accompanying BS economic numbers.

This is the power of the incumbent with a wall street/military industrial complex/globalist/fascist agenda.

Bosso
 
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