Telling Article from NYT in 1999 Regarding Fannie

[BigPapaVol]

Fannie Mae Eases Credit To Aid Mortgage Lending - New York Times

This tells much of the story of the problem we're sitting in today.

Many want to assess blame to some rich investment bankers and bad lenders for creating this mess, but here's a feel good story about how the disaster started.

 

[volinbham]

Hooray for Franklin Raines!

''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.''

I think these apply to all level of income earners too. A lot of the default is from the middle class buying way more house than they could afford. The philosophy Mr. Raines exposed above is a good reason why.

 

[MontereyVol]

Thats the biggest problem IMO people are buying too much house vs buying a house they can keep up with.

 

[BigPapaVol]

Hooray for Franklin Raines!



I think these apply to all level of income earners too. A lot of the default is from the middle class buying way more house than they could afford. The philosophy Mr. Raines exposed above is a good reason why.

the bottom line is that Fannie had to go to this policy across the board, because anything different would have negated their equal housing stand.

Everyone that could took advantage of it.

The policy, instituted for noble reasons, is just disastrous, when underwriting should remain pretty simplistic and disciplined process.

 

[volinbham]

The policy, instituted for noble reasons, is just disastrous,

That sure sounds familiar...and a vision of our likely future.

 

[rwemyss]

That's funny... my boss' son is named Franklin Raines.

 

[MG1968]

waits for the Obama apologists to chime in with, "there you right wing wackos go again, blaming Clinton."

you liberals can't lie your way out of this one and blame it on Bush or Global Warming. Fannie and Freddie were money machines for the democrats and it was democrats who blocked EVERY attempt at regulating them.