Question by Obama – Wimp in the White House: Are Democrats on path to repeat housing disaster?
http://www.washingtonexaminer.com/politics/Democrats-on-path-to-repeat-housing-disaster-8275069-60060902.html
“From 1995 on, there was an incredible push by the Clinton and Bush administrations in every way they could — CRA, Fannie Mae, Freddie Mac, and other ways — to increase the homeownership rate,” says Russell Roberts, a professor of economics at George Mason University. “What that did was to push up the price of housing, and that made it imaginable to lend money to people you never would have lent money to, on terms you wouldn’t have done before.”
In particular, Fannie Mae began to aggressively promote homeownership using the Community Reinvestment Act to give loans to people who couldn’t afford them. Fannie went to bankers and said, make as many CRA loans as you can; we’ll buy them and take them off your hands. “Our approach to our lenders is ‘CRA Your Way,’ ” top Fannie executive Jamie Gorelick told the Mortgage Bankers Association in 2001. “Fannie Mae will buy CRA loans from lenders’ portfolios; we’ll package them into securities; we’ll purchase CRA mortgages at the point of origination. …”
This is directly from the story. It should be read by all.
Best answer:
Answer by Paul Grass
Yes they are as they made some major cash on the last crash! Insanity it is!
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